Skip to main content

SBP Ready To Support The Faltering Markets Against Covid-19

The State Bank of Pakistan has said that it is willing to take all measures to support the financial markets against all the economic adversities created by the Covid-19 pandemic.

According to a report by Bloomberg, the pandemic which has created an uproar in economies across the globe, has not even spared Pakistan from its wrath. For the uninitiated, the equity market in Pakistan have taken a massive hit and has been on a declining trend ever since the news of the virus broke out.

However, the Governor of the Central Bank of Pakistan, Raza Baqir has said that: “The current market volatility in Pakistan is externally driven and the strengthening in the fundamentals of Pakistan’s economy that drove the improvement in Pakistan markets before the outbreak of coronavirus remains intact”.

“The central bank is monitoring the situation closely and remains ready to take any actions needed to address disorderly market conditions”, he added.

It is worthwhile to mention that the Central Bank took its first move against the faltering economy on Friday, wherein helped the Pakistani Rupee gain 0.1% following a four-day decline.

Comments

Popular posts from this blog

SECP Links Short Selling With Uptick Rule in Futures Market

In the wake of COVID-19 and its unprecedented effect on global stock markets, the Securities and Exchange Commission of Pakistan  in consultation with market stakeholders and market infrastructure institutions, has decided that for the April 2020 contract, a short sale in 36 specific shares of the futures market shall be subject to an uptick rule. This will ensure the provision of a required prior notice period to the market and retain liquidity in the rollover week. The uptick rule means that the shares of that relevant scrip have to be sold at a price higher than the last trade not lower. Further, to support the mutual fund industry, the maximum period of borrowing by mutual funds for redemption purposes will be extended from existing 90 days to 360 days. Moreover, the commission has allowed relaxing deposit requirements against the base minimum capital of TREC holders. The requirement to perform biometric verification at the time of opening of the account is eased and ...