SBP injects Rs660bn into market through two OMOs

The State Bank of Pakistan (SBP) on Tuesday announced the successful completion of two Open Market Operations (OMOs), through which it cumulatively injected Rs660.4 billion into the market. 

According to the SBP, it received five quotes from the market participants for Reverse Repo OMO with a tenor of 03-days.

The SBP accepted all five quotes, injecting a total of Rs 574.4 billion into the market at an annualised rate of 22.04%.

The second OMO was a Shariah Compliant Mudarabah based OMO Injection which also had a tenor of 03-days but it received two quotes from the market participants.

The SBP accepted both the quotes, injecting a total of Rs 86 billion into the system at an annualized rate of 22.07%.

The OMOs reflect the strong demand for liquidity in the market, as well as the SBP’s efforts to provide adequate and stable funding to the conventional and Islamic banking sectors. 

The OMOs are tools used by the SBP to manage the liquidity in the conventional and Islamic banking systems.