State Bank of Pakistan injects Rs 177 billion into money market
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.