Our Mission:
Our mission is to proactive, professional and effective management
of foreign exchange & debt markets to contribute towards
accomplishment of SBP’s mission to set DMMD as a performance
benchmark for other departments of SBP.
Introduction:
Domestic Market & Monetary Management Department is a newly
constituted department of State Bank of Pakistan. The idea of
constitution of this department was to combine FX and money
market activities under one roof, hence Securities department
taking care of money market activities and Dealing room taking
care of FX market activities were merged together on February
17, 2000.
Main
Objectives
1. Monetary Operations.
2. Raising short term and long-term domestic debts for the Government.
3. Management of Government Debts
4. Providing funds to the financial institutions as lender of
last resort.
5. Monitoring of money and FX market activities.
6. Intervention in the FX market.
7. Reserve Management.
Organogram:
1. Local Foreign Exchange (FX) Division.
2. Local Money Market (MM) Division.
3. In house Reserve Management Division.
4. Outsourcing Reserve Management Division.
5. Government Securities Division.
6. Debt Management Division.
7. General Division
Functions
of DMMD
The Primary functions of Domestic Market & Monetary Management
Department fall into the following categories.
1.
Exchange Rate Policy Management.
• Stable Exchange rates and Forward Premiums at appropriate/
sustainable levels
• Sale & Purchase of third currencies at optimum prices
• Smooth & sufficiently liquid Foreign Exchange Market
• Optimal accumulation of Foreign Exchange Reserves and
Forward Portfolio
2. Monetary Policy Implementation.
• Maintenance of stable interest rates in inter-bank money
market through proactive management of Money Market liquidity.
• Raising short-term government debt and developing yield
curve through auction of Market treasury bills.
• Proactive management of Money Market Liquidity through
Open Market Operations.
• Providing liquidity to the market through SBP 3 days
repo facility.
3. Reserve Management.
• Optimal utilization of Reserve Portfolio and maximum
returns on investment of surplus reserves. Hiring of investment
consultant & Fund Managers for optimising returns.
4.
Debt Management.
a) Domestic Debt
• Developing the markets for government securities.
• Coordination with monetary and Fiscal Policies.
• Raising short term and long term domestic debt for the
government.
• Data base management of permanent and floating debts.
b) External Debt
• Monitoring and ensuring prompt payment of external debt
instalments through State Bank of Pakistan and commercial banks.
• Management of FEBC, DBC, FCBC (3 & 5 yrs), Special
US Dollar Bonds etc., through formulation and interpretation
of rules and regulations governing these securities to ensure
smooth functioning of the system.
• To generate reports on external debt, connectivity of
Debt Management and Financial Analysis System (DMFAS) have been
established between Eco. Affairs Division and SBP.
Money Market Monitoring (M-III)