Domestic Markets and Monetary Management Department (DMMD) was created in September 2006, as a result of a comprehensive restructuring within State Bank of Pakistan, with the objective of transforming the central bank into a dynamic institution more responsive to the growing sophistication in financial markets. DMMD is an off-shoot of the previous Exchange and Debt Management Department (EDMD), which was established in February 2000 by merging the former Securities Department and the Foreign Exchange Dealing Room. In April 2011, the Financial Markets Strategy & Conduct Department (FSCD) was merged in DMMD. Similarly, all policy related work pertaining to Cash Reserve Requirements (CRR) and Statutory Liquidity Requirements (SLR) and functions pertaining to Financial Derivatives Business Regulations, previously performed by Banking Surveillance Department (BSD), have been transferred to DMMD.
The core objective of Domestic Markets and Monetary Management Department is to implement the Monetary Policy stance of the State Bank of Pakistan. DMMD initiates policy driven actions in the domestic financial markets for effective market and liquidity management. The major functions of the DMMD are described below: