KARACHI: The State Bank of Pakistan (SBP) has injected over Rs530 billion worth of liquidity into the banking system in a week’s time to avert any cash crunch, analysts said on Friday.
The SBP, in its latest reserve repo operation in the Treasury Bills and Pakistan Investment Bonds (PIBs), conducted on Friday, pumped Rs485.5 into the banking system. The commercial banks also witnessed a liquidity injection of Rs48 billion in an open market operation held on Monday.
Analysts said there has been a tight liquidity crunch in the banking system due to excessive demand for the currency notes ahead of Eid-ul-Fitr.
The interbank market is under strained liquidity situation that forced the central bank inject such a large amount of liquidity into the banking system, according to the banking sector experts. A statement issued by the SBP said that Rs485 billion were injected at the rate of 10.10 percent per annum.