SBP injects Rs1.74 trillion

KARACHI: The State Bank of Pakistan (SBP) on Friday injected Rs1,739 billion in the interbank market in three- and seven-day reverse repo to ensure liquidity in the banking system.

The central bank pumped Rs1,133.45 billion in three-day reverse repo at 5.77 percent rate of return and remaining Rs605.95 billion in seven-day tenor at 5.79 percent.

The rate of return in both tenors is slightly above the key policy rate of 5.75 percent. The overnight repo rate was at 5.90 percent on closing of July 14.

The latest open market operation (OMO) is the fourth injection during this week. An official of the central bank said that the injections were made due to liquidity shortage faced by the banks due to Eid-related withdrawals.

Dealers said that the banks required liquidity and offered the central bank lending against maturities.