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