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Old Wednesday, July 24, 2013
jaris ojeran jaris ojeran is offline
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Role of SBP
(this question was asked in my interview)
(short tips)

guardian of monetary system. it sets short term interest rates and oversees health of financial system, including, by acting as lender of last resort to commercial banks. independent central bank should reduce the risk of inflation. SBP issues bank notes to regulate mnetary and credit system of Pakistan.

main functions:

conduct monetary policy
management of public debt
management of foreign exchange (balance of payment)
advise s govt on policy matters
maintain close relations with international institutions
regulate liquidity in market (by controlling interest rates)
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