State Bank of Pakistan injects 2,410 billions into money market
KARACHI: The State Bank of Pakistan taken Rs.251.05 billions of the market through mop up operations during 24-28 May 2021, while 2,410.3 billions were injected to maintain liquidity.
SBP’s Domestic Markets and Monetary Management Department on Tuesday moped up Rs. 113 billions against 7 bids on a rate of 6.97% with a maturity date of 3 days. On the following day, Wednesday, further Rs. 61 billions were taken from money market at 6.96 cut off rate, all the 7 bids for 2 days were accepted.
Monetary authorities use Open Market Operation as a tool to inject or mop-up funds, based on the liquidity requirements, from the banking system via the purchase or sale of eligible securities.
On Thursday, through a single day reverse repo mop up operation, the central bank absorbed another 77.05 billion from money market by accepting all 10 bids at 6.96 % cut off rate. On the last working day of the week the SBP injected Rs. 2,410.3 billion on Friday 28-May, through Reverse Repo for 7 days.
As many as 27 bids offered between a range of 7.09 to 7.05 percent . All the 27 bids for amount totaling Rs. 2,410.3 billion at cut opff rate of 27 7.05 percent.