SBP injects Rs1.91tr via OMO
The State Bank of Pakistan (SBP) injected Rs1.91 trillion into the banking system through Open Market Operations (OMO) on Friday to ease short-term liquidity pressures in the money market.
Under the conventional OMO, the SBP injected Rs1.53 trillion, accepting the entire amount offered by market participants. Out of the total, Rs163.5 billion was injected for seven days at a rate of 10.54%, while Rs1.364 trillion was provided for 21 days at 10.52%. The realised value of the accepted bids stood at Rs1.48 trillion.
In addition to the conventional operation, the central bank also conducted a Shariah-compliant Mudarabah-based OMO, through which it injected Rs380.05 billion against an offered amount of Rs480 billion. The realised value of the accepted bids stood at Rs379.45 billion.
For the seven-day Shariah-compliant operation, banks offered Rs460 billion, of which the SBP accepted Rs360.05 billion at a rate of 10.55%. The central bank noted that bids worth Rs308 billion were submitted at the rate of 10.55%, out of which Rs208.05 billion were accepted on a pro-rata basis, reflecting strong participation from Islamic banking institutions.
Meanwhile, in the 21-day Shariah-compliant OMO, the SBP accepted the full Rs20 billion offered by participants at a rate of 10.55%.
Furthermore, the Pakistani rupee posted a marginal gain of Rs0.01 against the US dollar in the inter-bank market on Friday, closing at 279.40 compared with 279.41 the previous day.
Meanwhile, gold prices in Pakistan declined on Friday despite a slight increase in the international market, where softer US payrolls data raised expectations that the Federal Reserve may consider cutting interest rates. However, gains in the global bullion market remained limited as a stronger US dollar weighed on prices, keeping the precious metal on track for its first weekly decline in five weeks.
In the local market, the price of gold per tola fell by Rs3,400 to settle at Rs533,762, according to rates issued by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA).
Similarly, the price of 10 grams of gold dropped by Rs2,915 to Rs457,614.
The decline follows Thursday's drop as well, when gold per tola had decreased by Rs2,800 to close at Rs537,162 in the domestic market.
Despite the fall in gold prices, silver moved in the opposite direction. The price of silver increased by Rs104 to reach Rs8,914 per tola in the local market.
In the international market, gold prices edged higher on Friday, supported by weaker-than-expected US payrolls data, which reinforced hopes that the US Federal Reserve could move toward an interest rate cut in the coming months. Lower interest rates generally support gold prices because the metal does not yield interest, making it more attractive compared with interest-bearing assets when rates fall.
According to Reuters, spot gold rose 0.4% to $5,095.78 per ounce as of 1402 GMT. However, the metal remained down 3.4% for the week, putting it on course for its first weekly decline in five weeks.
US gold futures for April delivery also posted gains, rising 0.5% to $5,105.10 per ounce.