SBP pumps Rs2.72trn into market through OMOs
Rs2.66 trillion were injected through a reverse repo OMO and Rs68 billion through a Shariah-compliant Modarabah-based OMO
The State Bank of Pakistan (SBP) has provided a massive liquidity boost to the market by conducting two types of open market operations (OMOs) on Friday.
According to a statement issued by the SBP, Rs2.66 trillion was injected through a reverse repo OMO, in which it purchased government securities from banks and financial institutions for a specified period of time.
[caption id="attachment_159385" align="aligncenter" width="586"]
Result of Reverse Repo OMO - SBP[/caption]
The reverse repo OMO was conducted for a tenor of seven days at a rate of 21.75%, the statement said.
In addition, the SBP also injected Rs68 billion through a Shariah-compliant Modarabah-based OMO, which is a new facility introduced by the SBP in December 2021 to cater to the liquidity needs of the Islamic banking sector.
[caption id="attachment_159386" align="aligncenter" width="631"]
Result of Shariah Compliant Mudarabah-Based OMO - SBP[/caption]
The Modarabah-based OMO was conducted for a tenor of three days at a profit rate of 22.11%, the statement added.
The OMOs are part of the SBP’s monetary policy tools to manage market liquidity and interest rates. The SBP conducts OMOs on a regular basis to ensure smooth functioning of the financial system and to support economic activity.
2 Comments
No comments yet. Be the first to join the discussion!
