SBP injects Rs3,174 billion into market through OMOs

WEB DESK: On Friday, the State Bank of Pakistan (SBP) injected a substantial Rs3,174.35 billion into the market through two separate Open Market Operations (OMOs).

This included a reverse repo purchase and Shariah-compliant Mudarabah-based operations.

On August 9, 2024, the SBP conducted an OMO involving reverse repo purchases for both 7-day and 28-day tenors, accepting a total of 30 bids worth Rs3,084.35 billion.

For the 7-day tenor, the bank received 13 bids offering a cumulative Rs732.2 billion with returns ranging from 19.57 per cent to 19.60 per cent. For the 28-day tenor, 19 bids were submitted, amounting to Rs2,542.25 billion, with returns varying between 19.55 per cent and 19.61 per cent.

The central bank accepted all 13 bids for the 7-day tenor, disbursing Rs550 billion at a return rate of 19.57 per cent. For the 28-day tenor, 17 bids amounting to Rs2,534.35 billion were accepted at the same return rate of 19.57 per cent.

In addition, the SBP carried out Shariah-compliant Mudarabah-based OMOs for both tenors, injecting Rs90 billion into the market. For the 7-day tenor, the SBP received one bid worth Rs90 billion at a return rate of 19.58 per cent and accepted it. However, no bids were received for the 28-day tenor.

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