KARACHI: The State Bank of Pakistan (SBP) conducted a reverse repo and Shariah-compliant Modarabah-based Open Market Operation (OMO) on Thursday, injecting a total of Rs13.32 trillion into the market. Of this, Rs13 trillion was injected through the reverse repo OMO, while the remaining Rs270 billion was introduced via the Shariah-compliant Modarabah-based OMO.
In the conventional OMO, the SBP injected Rs13.05 trillion into the market through reverse repo agreements. The breakdown of the results is as follows:
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7-Day Reverse Repo (Injection): Offered – Rs904,250 million, Accepted – Rs904,250 million, Rate – 11.02%
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14-Day Reverse Repo (Injection): Offered – Rs12,405,750 million, Accepted – Rs12,150,000 million, Rate – 11.01%
For the Shariah-compliant Modarabah-based OMO, Rs270 billion was injected into the market, with the following results:
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7-Day Modarabah (Injection): Offered – Rs120,000 million, Accepted – Rs120,000 million, Rate – 11.15%
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14-Day Modarabah (Injection): Offered – Rs150,000 million, Accepted – Rs150,000 million, Rate – 11.13%
OMO operations are a tool used by the SBP to manage liquidity in the market, either by injecting funds to address shortages or by mopping up surplus liquidity. In OMO injections, the SBP lends funds to banks or Primary Dealers (PDs) against eligible collateral, typically government securities like Market Treasury Bills (MTBs) or Pakistan Investment Bonds (PIBs).
These operations play a crucial role in stabilizing market liquidity and ensuring smooth functioning of the financial system.
