SBP injects Rs10.13 trillion into money market through OMOs

KARACHI: The State Bank of Pakistan (SBP) injected a significant Rs10,129.3 billion into the market on Friday through Reverse Repo Purchase and Shariah Compliant Mudarabah based Open Market Operations (OMOs).

According to the results of the OMOs released on Friday, the SBP conducted these operations on July 12, 2024, for 7-day and 28-day tenors. The central bank accepted all 42 received bids, amounting to Rs10,074.3 billion.

For the 7-day tenor, the SBP received 25 bids totalling Rs8,102.75 billion, with a rate of return ranging between 20.54 per cent and 20.60 per cent.

For the 28-day tenor, 17 bids were received, amounting to Rs1,971.55 billion, with a similar rate of return range. The SBP accepted all the bids for both tenors at a uniform annual rate of return of 20.54 per cent.

Additionally, the central bank injected Rs55 billion into the market through Shariah Compliant Mudarabah based OMOs for a 7-day tenor. For this tenor, the SBP received a single bid of Rs55 billion at a rate of return of 20.58 per cent. No bids were received for the 28-day tenor. The SBP accepted this single bid at a cut-off rate of 20.58 per cent.

These measures by the SBP are aimed at managing liquidity in the financial system and ensuring smooth monetary operations.

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