SBP injects Rs757 billion into market through OMOs

The State Bank of Pakistan (SBP) conducted two Open Market Operations (OMOs) on August 1, 2024, injecting a total of Rs 757 billion into the financial system. 

As per data shared by the central bank, these operations included both conventional and Shariah-compliant Mudarabah-based OMOs, aimed at managing liquidity and ensuring monetary stability.

In the conventional Reverse Repo OMO, the SBP injected Rs 550 billion into the market. Out of a total offered amount of Rs712.4 billion, the SBP accepted Rs550 billion at a rate ranging from 19.58% to 19.71%. 

Simultaneously, the SBP conducted a Shariah-Compliant Mudarabah-based OMO, accepting Rs207 billion out of the Rs207 billion offered. 

The cut-off rate for this one-day operation was 19.59%, with both quotes submitted being accepted.

These OMOs highlight the SBP’s efforts to maintain liquidity in the banking system through a mix of conventional and Islamic financial instruments, ensuring smooth financial operations and monetary stability in Pakistan.