You are on page 1of 12

Central Bank

The Monitory Control
Authority

STATE BANK OF PAKISTAN
Mission
SBP mission is to practical, professional
and effective management of foreign
exchange & debt markets to contribute
towards achievement of SBP’s mission

To set Exchange & Debt Management
Department (E&DMD) as a
performance benchmark for other
departments of SBP.
Introduction:
Exchange & Debt Management Department is
a newly constituted department of State
Bank of Pakistan.
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.
Objectives:
• Monetary Operations.
• Raising short term & long-term
domestic debts for the Government.
• Management of Government Debts
• Providing funds to financial institutions
as lender of last resort
• Monitoring of money and FX market
activities.
• Intervention in the FX market.
• Reserve Management.
Organ gram
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 E&DMD

The Primary functions of Exchange
& Debt Management Department
fall into the following categories.
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.
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 operation.
 Providing liquidity to the market through SBP 3
days repot facility.
Reserve Management
Optimal utilization of Reserve
Portfolio and maximum returns
on investment of surplus reserves
Hiring of investment consultant &
Fund Managers for optimizing
returns
Debt Management
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
External Debt

 Monitoring and ensuring prompt payment of
external debt installments 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 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