Oil Prices: The Nymex crude oil future stood at US$88.14/bbl at 8:50 (PST). (Bloomberg)

Special Convertible Rupee Account (SCRA): For 7/10/08 total inflow was US$0.66m, while total outflow was US$1.63m, resulting in a net outflow of US$0.97m. The cumulative net flow during the month reached at (US$2.13m), resulting in the cumulative net flow during the year (Jul’08 to date) to reach at (US$236.61m). (SBP)

200 bps cut in CRR in two phases: SBP announced that it was cutting the CRR by 200 bps to 7% in two phases to provide some relief to the banks to overcome their liquidity shortage. Reduction in the CRR for all deposits up to one-year maturity is by 100bps to 8% from 9% effective October 11 and by another 100bps to 7% effective November 11. (BR)

SBP intervenes as rupee plunges: SBP has taken several measures to stop the fall of rupee against the dollar by intervening in the interbank market with US$100m and offering exchange companies for unlimited supply of dollar at a notional rate of Rs80. (BR)

Tareen sees banks' cartel behind currency fall: Shaukat Tareen has said that a cartel of few banks is involved behind the recent rupee depreciation, which has created some liquidity issues in the country. Regarding the recent crisis being faced by the Karachi stock market, he said that the decision to set a floor was a wrong decision. He further said that NIT and other public sector institutions would also make their investment to support the share market. (BR)

Reports about freezing of foreign exchange accounts denied: SBP has categorically denied reports regarding the freezing of foreign currency accounts and sealing of lockers at banks. (BR)
Kibor at record 15%: Six month Kibor has reached at an all time high of 15% breaching the SBP deadline of 13.5%. (FD)

Economy to improve within 3-4 weeks; Tareen: Newly appointed advisor on finance, Shaukat Tareen said that rumours about the bankruptcy of Pakistan are groundless and the government will not seal bank lockers or freeze the foreign currency accounts. He further said that economic situation would improve within three to four weeks and that some foreign inflows were expected which would stabilize rupee. (DT)

Exchange firms asked to ensure foreign currency availability: The SBP has advised exchange companies to ensure uninterrupted supply of cash foreign currency to their customers. (DT)

PSO pays Rs14b dues to refineries: PSO has paid Rs14b outstanding dues to refineries following the payment made to PSO on the account of Price Differential Claim (PDC). (DT)

US$7.427b needed for import of refined POL products: An official working paper presented to the ECC of the Cabinet says Pakistan needs US$7.427b for import of refined petroleum products for FY09, US$1.2b extra against US$6.2b of the last fiscal year. (BR)

O/N rates: SBP suggests measures to rectify situation: SBP has taken strict notice of the unwarranted recent increase in overnight call rates and has advised banks to act prudently in sharing the liquidity in the system to ensure call rates are reflective of the fundamentals in the money market. (BR)