What are the money market instruments used in Pakistan?
By Isabella Turner
Money Market Instruments in Pakistan
- Treasury bills(Short term):
- Commercial Papers(Short term):
- Certificate of deposits/Investments(short to medium term):
- Repo and Reverse Repo Agreements(Short term):
What are the instruments of money market?
The main money market instruments are Treasury bills, commercial papers, certificate of deposits, and call money. It is highly liquid as it has instruments that have a maturity below one year. Most of the money market instruments provide fixed returns.
What is Pakistan money market?
Pakistan PK: Money Market Rate data was reported at 5.820 % pa in 2017. This records a decrease from the previous number of 5.848 % pa for 2016. Pakistan PK: Money Market Rate data is updated yearly, averaging 8.428 % pa from Dec 1964 to 2017, with 54 observations.
Who regulates Pakistan stock market?
Securities and Exchange Commission Pakistan
The capital market structure in Pakistan consists of an apex regulator of the markets, the Securities and Exchange Commission Pakistan (SECP), Pakistan Stock Exchange (emerged as a result of merging three stock exchanges during current year), Mercantile Exchanges, Central Depository Company (CDC) and a Clearing and …
What is the definition of a money market instrument?
Money market instruments are securities that provide businesses, banks, and the government with large amounts of low-cost capital for a short time. The period is overnight, a few days, weeks, or even months, but always less than a year. The financial markets meet longer-term cash needs.
Who are the primary participants of money market in Pakistan?
In Pakistan primary participants of money market are many like government of Pakistan, state bank of Pakistan, commercial, cooperative and saving banks.
How are money market instruments exempt from taxes?
The interest payments on these are exempt from federal taxes. There are also investments based on money market instruments. Money market funds, other short-term investment pools in banks, and the government combine money market instruments and sell shares to their investors.
What to look for in a money market account?
Look for savings products with variable interest rates that will rise along with rates. These include money market mutual funds, short-term CDs, and Treasury bills. You can also get savings accounts and money market accounts from your bank. These aren’t based on money market instruments.
