FMS Offices 2002

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Foreign Exchange Rates Data Compilation and
Dissemination
USERS-PRODUCERS WORKSHOP State Bank of
Pakistan Karachi.
May 08, 2006 Faisal Maqsood Joint Director
Foreign Exchange Markets Exchange Debt
Management Department
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Presentation Outline

• Current Exchange Rate System.
• Exchange Rate data compiled by SBP.
• Different types of Exchange Rates issued by SBP.

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Exchange Rate System

• Since May 1999, the official Exchange Rate has
  been abolished.
• State Bank has discontinued issuing the Official
  Exchange Rate.
• Under the new Exchange Rate System, any Bank
  holding the license of an Authorized Dealer is
  free to quote its own Exchange Rate against
  various foreign currencies.

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Floating Interbank ForeignExchange Rate

• The term Floating Interbank Exchange Rate -
  FIBR is primarily used for Exchange Rate
  applicable to Foreign Exchange transactions
  between Commercial Banks in the Interbank
  Foreign Exchange Market.
• The Interbank Foreign Exchange Market comprises
  of Commercial Banks having demand or supply of
  Foreign Exchange to cover transactions carried
  out with their Commercial Clients.

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Banks Exchange Rates for Commercial Clients

• For Commercial Clients, Banks are free to quote
  any Exchange Rate depending upon FIBR, their own
  liquidity and commercial objectives.
• Banks typically issue their daily Exchange Rate
  sheets for commercial clients which provide the
  buying/selling Exchange Rate of various Foreign
  Currencies.
• The Exchange Rate quoted by a Bank e.g. National
  Bank of Pakistan will be relevant only for NBPs
  customers and may differ from the Exchange Rate
  quoted by any other Bank.

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Exchange Rate Data Compilation at SBP

• State Bank of Pakistan collects Exchange Rate
  data from various market sources e.g. Banks,
  Interbank Brokerage Houses, REUTERS etc.
• On the basis of the data collected, SBP compiles
  different types of Exchange Rate for specific
  purposes.

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Data Compilation at SBP
Presently, SBP is compiling three types of
Exchange Rates

• Conversion Rates for Foreign Currency Deposits
  etc.
• Exchange Rates for Mark-to-Market Revaluation of
  Banks.
• Weighted Average Exchange Rate.

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(I) Conversion Rates for Foreign Currency Deposits
Data Compilation at SBP
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(II) Exchange Rates for Mark-to-Market Revaluation
Data Compilation at SBP
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(III) Weighted Average Exchange Rate
Data Compilation at SBP
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Thank You