The State Bank of Pakistan (SBP) has injected Rs996 billion worth of liquidity into the money market via an open market operation (OMO) through a reverse repo, it said on Friday.

As per the SBP, of the Rs996 billion injected, Rs157.75bn was injected for 7 days while the remaining Rs838.25 billion was for 63 days at a 15.09% rate of return.

OMO is a regular central bank operation, which is undertaken to meet government funding needs.

SBP injects Rs3.16 trillion in 7-day OMO

It is pertinent to mention that under the International Monetary Fund (IMF) programme, the government cannot borrow directly from the SBP. Thus, the central bank injects this liquidity into commercial banks, which use these funds to purchase government securities.

Some seven bids were placed by participants ranging between 15.09% to 15.22% for 07 days OMO, to raise Rs157.75 billion. While 26 bids were received ranging between 15.09% to 15.18% for 73- days OMO.