Karachi August 9 2024: The State Bank of Pakistan (SBP) injected PKR 3,174.35 billion equivalent to USD 11.4 billion in the market on Friday taking total injection to PKR 12,741 billion or USD 45.7 billion in last 8 days through reverse repo purchase and Shariah Compliant Mudarabah based Open Market Operation (OMO).
On last Friday, SBP has injected PKR 9,567.25 billion equivaluent to USD 34.2 billion into the market out of which PKR 1,067 billon or USD 3.8 billion is for 7 days.
“Amid increased reliance on commercial banks to finance the fiscal deficit, the liquidity requirements of the interbank market increased” states SBP in its report. The increase in liquidity requirements was despite retirement in loans for commodity operations, as well as a sizeable increase in bank deposits, the report added.
According to OMO results issued here, the SBP conducted an Open Market Operation, Reverse Repo Purchase (Injection) on August 09, 2024, for 7-day and 28-day tenors and accepted 30 bids cumulatively amounting to PKR 3,084.35 billion.
The central bank received 13 bids for 7-day tenor cumulatively offering an amount of PKR 732.2 billion at the rate of return ranging between 19.57 to 19.60 percent while 19 bids were received for the 28-day tenor offering an amount of PKR 2,542.25 billion at the rate of return ranging between 19.55 to 19.61%.
The SBP accepted all 13 quotes for a 7-day tenor amounting to PKR 550 billion at 19.57 % rate of return while 17 quotes for 28-day tenor amounting to PKR 2,534.35 billion were accepted at 19.57% rate of return.
Meanwhile, the central bank also conducted Shariah Compliant Mudarabah-based Open Market Operations for 7-day and 28-day tenors and injected PKR 90 billion in the market.
For the 7-day tenor, the SBP received one bid amounting to PKR 90 billion (face value of collateral) at 19.58% rate of return while no bid was received for 28-day tenor. The central bank accepted the single bid for 7-day tenor at 19.58% cut-off rate.
