SBP injects Rs1.91 trillion into banking system through OMO

The State Bank of Pakistan (SBP) injected Rs1,907.55 billion into the banking system on Friday through reverse repo purchase and Shariah-compliant Mudarabah-based open market operations (OMO) to maintain liquidity in the market.

According to the central bank, Rs1,527.5 billion was injected through reverse repo purchase operations conducted for seven-day and 21-day tenors against 11 bids. An additional Rs380.05 billion was provided through Shariah-compliant Mudarabah-based OMO.

For the 21-day reverse repo tenor, the SBP received eight bids offering a cumulative amount of Rs1,364 billion at rates ranging between 10.52% and 10.56%. The central bank accepted the entire amount at a cut-off rate of 10.52%.

For the seven-day tenor, three bids were received offering Rs163.5 billion at rates between 10.54% and 10.56%. The SBP accepted all three bids at a rate of 10.54%.

Separately, the central bank conducted Shariah-compliant Mudarabah-based open market operations for seven-day and 21-day tenors. For the seven-day tenor, seven quotes were submitted offering Rs460 billion at rates between 10.55% and 10.58%.

The SBP accepted Rs360.05 billion against three quotes at a rate of 10.55%. Of the total Rs308 billion offered at that rate, Rs208.05 billion was accepted on a pro-rata basis.

For the 21-day Shariah-compliant operation, the SBP received two bids offering Rs20 billion at rates between 10.55% and 10.56%, and accepted the entire amount at 10.55%.