Market Operation Department

Vision: To have an ever enhanced reserve management with an aim to preserve capital, ensure foreign exchange liquidity; achieve desired level of alpha along with effective implementation of monetary policy to ensure market and exchange rate stability.

Mission: Our primary responsibilities are to manage foreign exchange reserves in accordance with the approved procedures, implement monetary policy by conducting regular foreign exchange and capital notes auctions, issue letters of credit to government and semi government institutions and release official foreign exchange rates in accordance with the established procedures.

Objectives:

MOD has the following objectives:

• Effective implementing monetary policy;
• Managing international reserves;
• Maintaining sufficient foreign currency liquidity;
• Provide Letters of Credit facilities to the government and/or semi government institutions; and
• Manage overnight and credit facilities to the eligible banks. 

Structure

Market Operation Department has 28 staff and is segregated to the following 5 sections in accordance with their terms of duties.

1. Front Office Section

Main responsibilities of this section are to:

• • Manage and invest foreign exchange reserves and prepare periodic reports about them;
  • Maintain regular contacts with correspondent banks and related foreign financial institutions;
  • Ensure availability of enough foreign exchange reserves for fulfilling liquidity needs;
  • Coordinate investment committees meetings; and
  • Oversee performance of investments and placements.

2.  Middle Office Section

Main responsibilities of this section are to:

• Conduct risk management of foreign exchange reserves;
• Prepare periodic risk management reports;
• Research on international markets and investment opportunities; and
• Perform rebalancing of index portfolios periodically.

3. Foreign Currency Auction and Exchange Rate Section

Main responsibilities of this section are to:

• • Prepare the official exchange rates and respond to queries of relevant institutions on this;
  • Perform regular survey’s from the markets on foreign exchange rate related matters;
  • Conduct foreign currency auctions as per relevant regulation and procedure; and
  • Communicate with auction participants, national and international bodies on auction related matters.

4. Government Banking Section

Main responsibilities of this section are to:

• Conduct capital notes auctions as per relevant regulation and procedure and report on it;
• Oversee secondary market of capital notes as per the regulation;
• Extend the overnight and credit standing facilities to eligible banks; and
• Adjusting the required reserves and deposit insurance premium of banks periodically.

5. Letters of Credit Section

Main responsibilities of this section are to:

• • Issue letters of credit to government and semi government institutions and report on their status;
  • Provide facilities for amendments, termination and payments of letters of credit; and
  • Communicate on LC relevant matters with the relevant authorities and correspondent banks.