SBP injects Rs12tr into banks
The State Bank of Pakistan (SBP) on Friday injected around Rs12 trillion into the money market through conventional and Shariah-compliant open market operations (OMOs) to ensure adequate liquidity in the banking system.
According to the central bank's Domestic Markets and Monetary Management Department, the SBP accepted Rs11.99 trillion on face value in its conventional reverse repo (injection) operation at a uniform rate of 11.01% per annum.
Out of the total, Rs675 billion was accepted for seven-day tenor and Rs11.32 trillion for 14-day tenor. The operation attracted a combined 31 bids, with the seven-day portion partially accepted on a pro rata basis.
Separately, in its Shariah-compliant Mudarabah-based OMO, the SBP injected an additional Rs277 billion for seven days at a return rate of 11.05%. No bids were received for the 14-day tenor in the Islamic window.
Meanwhile, gold prices in Pakistan climbed on Friday, tracking strength in the international bullion market, where the precious metal hovered above the key level of $4,000 an ounce amid uncertainty over another potential interest rate cut by the US Federal Reserve this year. Despite the cautious tone in global trading, gold remained on course for its third consecutive monthly gain.
According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola rose by Rs5,300 to settle at Rs424,162. The price for 10 grams increased by Rs4,544, reaching Rs363,650.
Commenting on the international trend, Adnan Agar, Director at Interactive Commodities, noted that gold hit a high of $4,038 before retreating towards $3,976. He said the market has repeatedly tested the $4,000 level but struggled to sustain gains above it.
"If gold closes below $4,000, it will likely remain somewhat bearish with possible downside targets near $3,900 and $3,850," he explained, adding that a break above the threshold could lift prices towards $4,080 and $4,100.
The Pakistani rupee recorded a slight uptick against the US dollar in the inter-bank market on Friday. By the end of the trading session, the local currency stood at 280.91 against the greenback, reflecting a marginal appreciation of one paisa compared to the previous day's close at 280.92.