SBP injects Rs 2.17 trn into banking system through OMOs

The State Bank of Pakistan (SBP) injected cumulatively Rs 2.17 trillion into the market through reverse repo and Shariah-compliant Modarabah-based Open Market Operations (OMOs) on Friday.

According to the SBP, Rs 2.09 trillion was injected through reverse repo, and Rs Rs 82 billion was injected through Modarabah-based OMO.

The SBP received bids worth Rs 2.24 trillion in the conventional OMO and Rs 132 billion in the Islamic OMO. 

The bids were offered in three different tenors: 07-day, 14-day, and 28-day. The rates of return for the accepted bids ranged from 22.04% to 22.07%, which is in line with the SBP’s policy rate of 22%.

The SBP stated that the OMOs were conducted to meet the liquidity needs of both conventional and Islamic banking systems and to ensure smooth functioning of the money markets.