Mettis Global News
Mettis Global News
Mettis Global News
Mettis Global News

Trending :

OMO Result: SBP injects Rs10.47tr

OMO Result: SBP injects Rs2.6tr
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

May 31, 2024 (MLN): The State Bank of Pakistan (SBP) conducted a reverse repo and Shariah Compliant Modarabah based Open Market Operation (OMO) today, in which it cumulatively injected a total of Rs10.47 trillion into the market. Of which Rs10.27tr were injected through reverse repo OMO.

Summary of OMO Result (Reverse Repo)
    Amount (Rs in Million) Rate (%) Quotes
Tenor Type Offered Accepted High – Low Accepted Offered Accepted
7D Reverse Repo (Injection) 10,122,550 10,122,550 22.13 – 22.06 22.06 31 31
28D Reverse Repo (Injection) 145,950 145,950 22.12 – 22.07 22.07 4 4
Total 10,268,500 10,268,500  

Meanwhile, the remaining Rs202 billion was injected through Shariah-compliant Modarabah-based OMO.

Summary of OMO Result (Shariah)
    Amount (Rs in Million) Rate (%) Quotes
Tenor Type Offered Accepted High – Low Accepted Offered Accepted
7D Reverse Repo (Injection) 202,000 202,000 22.1 – 22.09 22.09 2 2
28D Reverse Repo (Injection) NBR
Total 202,000 202,000  

Explanatory Note

Open Market Operation is a tool used by SBP to inject or mop-up funds, based on the liquidity requirements, from the banking system via the purchase or sale of eligible securities.

Operationally, in case of OMO (Injections), SBP lends funds to banks/Primary Dealers (PDs) against eligible collateral to address liquidity shortage in the system.

For OMO (Injections), marketable government securities, i.e. Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs) are eligible securities.

In OMO (Mop-up), SBP sells MTBs to banks against funds to remove surplus liquidity from the system.

Eligible collateral for OMO (Mop-up) includes selling MTBs (on repo or outright basis) to banks for removing excess liquidity from the system.

In case of Bai-Muajjal, a Shariah compliant tool for managing liquidity in the Islamic banking system, GOP Ijara Sukuk are eligible securities.

Banks and PDs are eligible counterparties to OMO transactions. For Bai Muajjal transactions, Islamic banks and specialized Islamic windows of conventional banks are eligible counterparties.

Copyright Mettis Link News

Posted on: 2024-05-31T12:28:06+05:00