December 31, 2024
SBP mops up Rs460 billion in latest open market operation
OMO mop-up done through a 3-day repo sale at a rate of 12.95%
December 31, 2024
The State Bank of Pakistan (SBP) conducted an Open Market Operation (OMO) in which it mopped up a total of Rs460 billion from the market.
Summary of OMO Result:
| Tenor | Type | Amount Offered (Rs in millions) | Amount Accepted (Rs in millions) | Rate (%) | Quotes |
|---|---|---|---|---|---|
| 03-Day | Repo Sale (Mop up) | 460,000 | 460,000 | 12.90 – 12.95 | 12.95 |
OMO is a tool used by central banks, like the SBP, to inject or mop up funds from the banking system based on liquidity requirements.
In the case of a mop-up operation, the SBP sells Market Treasury Bills (MTBs) to banks, removing surplus liquidity from the system. On the other hand, during an injection, the SBP lends funds to banks or Primary Dealers (PDs) against eligible collateral to address any liquidity shortage.
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