SBP injects Rs3.17 trillion into market through OMOs

The State Bank of Pakistan (SBP) injected a total of Rs3.17 trillion into the banking system through both conventional and Shariah-compliant Open Market Operations (OMOs) on August 9, 2024. 

These operations are part of the SBP’s ongoing efforts to manage short-term liquidity in the financial markets.

In the conventional OMO, the SBP accepted Rs3.08 trillion in bids, with Rs550 billion accepted for the 7-day tenor at a rate of 19.57%. The 28-day tenor saw Rs2.53 trillion accepted at a 19.57% rate of return.

Simultaneously, in the Shariah-compliant Mudarabah-based OMO, the SBP injected Rs90 billion at a cut-off rate of 19.58% for the 7-day tenor. 

No bids were received for the 28-day tenor in this operation.

The focus on short-term tenors in both operations highlights the market’s current preference for liquidity management in the face of ongoing economic challenges.