State Bank of Pakistan injects Rs 177 billion into money market
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The State Bank of Pakistan (SBP) has injected Rs177 billion worth of liquidity into the money market via an open market operation (OMO) through a reverse repo and Shariah Compliant Mudarabah, it said on Tuesday.
As per the SBP, of the Rs177 billion injected, Rs152.35 billion was injected for 3 days at 15.18% while Rs25 billion was injected for 3 days under Shariah Compliant Mudarabah at a 15.15% rate of return.
OMO is a tool used by a central bank (or monetary authority) to inject or mop-up funds, based on the liquidity requirements, from the banking system via the purchase or sale of eligible securities.
Operationally, in case of OMO (Injections), SBP lends funds to banks/PDs against eligible collateral to address liquidity shortage in the system.
