The State Bank of Pakistan (SBP) conducted an Open Market Operation (OMO) where it obtained a total of Rs460 billion from the market.
OMO Result Summary:
| Tenor | He writes | Amount Offered (Rs in Millions) | Amount accepted (Rs in millions) | an average (%) | quotes |
|---|---|---|---|---|---|
| 03-day | Repo sale (disposal) | 460,000 | 460,000 | 12.90 – 12.95 | 12.95 |
OMO is a tool used by central banks, such as SBP, to inject or withdraw money from the banking system based on liquidity requirements.
In the case of a purge, a country’s central bank sells market treasury bills (MTBs) to banks, removing excess liquidity from the system. On the other hand, during injection, SBP lends money to banks or primary dealers (PDs) against eligible collateral to address any liquidity shortfall.