SBP injects Rs523.7b via OMOs

The State Bank of Pakistan (SBP) on Wednesday injected Rs523.7 billion into the market through reverse repo purchase and Shariah-compliant Mudarabah-based Open Market Operations (OMO).

The SBP conducted an Open Market Operation, Reverse Repo Purchase (Injection), on January 29, 2025, for a two-day tenor and, as per issued results, accepted an amount of Rs224.7 billion offered through nine bids.

By injecting money into the market through this mechanism, the SBP ensures banks have enough cash to continue lending and managing their day-to-day operations.

The central bank received nine bids for a two-day tenor, cumulatively offering an amount of Rs224.7 billion at the rate of return ranging between 12.05% to 12.16%. The SBP accepted the entire amount offered through all nine quotes for the two-day tenor at a 12.05% rate of return.

Meanwhile, the SBP also conducted a Shariah-compliant Mudarabah-based OMO for the two-day tenor and injected Rs299 billion into the market. The central bank received three bids for a two-day tenor, quoting an amount of Rs299 billion at the rate of return ranging between 12.05% to 12.14%.

Gold prices rose on Wednesday, mirroring an increase in international rates. In the local market, the price of one tola of gold climbed by Rs2,300 to reach Rs288,700, according to the All-Pakistan Gems and Jewellers Sarafa Association.

Moreover, the rupee recorded a slight gain against the US dollar, appreciating by 0.02% in the inter-bank market. The currency stood at 278.87, higher by 6 paisa.