SBP injects Rs10,470 billion to stabilise market liquidity

WEB DESK: The State Bank of Pakistan (SBP) has infused Rs10,470.5 billion into the financial market through a combination of reverse repo purchases and Shariah-compliant Mudarabah-based Open Market Operations (OMOs).

According to the OMO results released on May 31, 2024, the SBP conducted reverse repo purchase injections for tenors of 7 and 28 days. The central bank received 31 quotes for the 7-day tenor, totaling Rs10,122.55 billion, with offered return rates ranging from 22.06 per cent to 22.13 per cent.

Additionally, it received four quotes for the 28-day tenor, amounting to Rs145.95 billion, with return rates between 22.07 per cent and 22.12 per cent.

The SBP accepted all 31 quotes for the 7-day tenor at a return rate of 22.06 per cent per annum. Similarly, it accepted all quotes for the 28-day tenor at a return rate of 22.07 per cent per annum.

Simultaneously, the SBP carried out Shariah-compliant Mudarabah-based OMOs for the same tenors. For the 7-day tenor, it received two quotes amounting to Rs202 billion, with return rates ranging from 22.09 per cent to 22.10 per cent.

The central bank accepted both quotes at a cut-off rate of 22.09 per cent. No bids were received for the 28-day tenor under this operation.

This move by the SBP aims to manage liquidity in the market effectively, ensuring financial stability and supporting economic growth.

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