NBP Treasury

Treasury Services

Treasury Products

Plain Vanilla FX Products

NBP Treasury a market price maker and trend setter in the plain vanilla Foreign Exchange products. It’s ability to offer tight prices, coupled with timely and accurate research making it a bank of choice for clients seeking to favorably position their currency risk As a result, National bank has one of the largest FX book in the country.

Latest Rate Sheet

Pakistan Investment Bonds

Pakistan Investment Bonds issued by Government of Pakistan are a preferred means for a majority of institutional investors to invest their surplus funds for a longer time horizon. This way they are able to lock a higher yield for a relatively long term rather than take the risk of re-pricing after relatively shorter time periods. Furthermore, PIBs are highly secured and risk free as they are guaranteed by the government of Pakistan.

NBP is the leading Primary Dealer for PIBs primarily because of its inventory size and the appetite for such a long-term instrument given its deposit base. While most foreign / private banks would have to go to the secondary market in order to satisfy a large order from an institutional investor, NBP can execute such large orders through its own book. This means that it can offer tight prices for large amounts even under volatile market conditions.

Derivatives Products

NBP treasury has been at the forefront in developing the derivatives market in Pakistan and has contributed both individually and from the FMA (Financial Market Association) front as well. The first ever Derivative transaction of the Pakistani banking sector was done by NBP. Some of the more common derivative structures being offered include:

Currency Options

Hedges Foreign Exchange Risk
An option gives the buyer the right but not the obligation to buy or sell an asset at a pre-specified date and price. So the upside profit potential is unlimited whereas the downside loss is protected at a pre determined level. Various structures of currency options are available including

Knock-ins / Knock outs
Participating Forwards
... and many more

Interest Rate Swaps and FRAs

Hedges the Interest Rate risk
A client can convert a fix rate loan into floating rate one or vice versa by using these derivative instruments. This allows the clients to develop and implement their views about the evolving interest rate scenario. For example, if the borrower feels that the interest rate might go up in the future, than he may choose to enter into a Pay Fixed – Received Floating swap with its bank to effectively hedge its floating rate loans.

Cross Currency Swaps

Hedges the Interest Rate Risk
This product allows a client to convert its rupee based loans into a dollar based loan. The client’s exposure is shifted from PKR KIBOR to USD LIBOR.

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