Our Vision:

To illustrate a Proactive, Professional and Planned approach for effective Management of Exchange and Debt Markets so as to contribute towards accomplishment of Exchange & Monetary Policy Objectives.

Our Mission:

DMMD strives to set Performance Benchmark within SBP & Pakistan’s Financial Markets.

Introduction:

Domestic Markets and Monetary Management Department 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 together the former Securities Department and the Foreign Exchange Dealing Room.

The department is divided in to three divisions and a unit namely, Domestic FX Market Division (DFXD), Debt Markets Division (DMD) and Off-site Market Surveillance Division (OMSD) and Business Planning & Support Unit.

Departmental Goals

The core objective of Domestic Markets and Monetary Management Department is to implement the Monetary Policy objectives of the State Bank of Pakistan by using the available tools in both the money and foreign exchange markets.

Departmental Objectives

• Monitoring of Money and FX market activities
• Monetary Operations.
• Conducting auctions for raising short term and long-term domestic debt for the government.
• Providing funds to the financial institutions as lender of last resort.
• FX operations in the domestic FX market in accordance with monetary policy objectives.
• FX Cash Flow Management.
• FX Reserve Analysis & Reporting.
• Managing External Debt Repayments

Divisions: Debt Markets Division (DMD)

Goals & Objectives:

• Liquidity Management & Implementation of Monetary Policy Objectives
  • Maintenance of the overnight rate within the implicit corridor as agreed in the MPS by using the available tools:
    • Open Market Operations
    • Discount Rate
  • Forecasting of daily cash flows in the interbank market for the next two weeks in order for effective liquidity management in accordance with Monetary Policy Objectives
  • Monitoring of surplus liquidity invested in government securities over and above reserve requirements
  • Monitoring of various interest rate curves of the market for gauging Expectation or any other market behavior
• Responsible for Conducting Auctions of Treasury Bills, Pakistan Investment Bonds, Ijara Sukuk on behalf of GoP

Divisions: Domestic FX Market Division (DFXD)

Goals & Objectives:

• Oversight and Management of the FX market and the Exchange Rate in accordance with the objectives of the Monetary Policy
• Cash Flow Management and reporting of the Foreign Exchange Reserves
  • Daily item-wise forecast for the next 30 days
  • FX swaps undertaken to streamline cash flows in coordination with the objective of PKR liquidity management
• Management and Payment of all External Debt Liabilities on behalf of GoP

Divisions: Off-site Market Surveillance Division (OMSD)

Goals & Objectives:

• Surveillance and Monitoring of all the Foreign Exchange & Money Market transactions in the Interbank Market and analysis of the related trends

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