Central Bank Injects Liquidity into the Market
On Friday, the central bank injected a total of Rs1,800 billion into the market through Reverse Repo Purchase and Shariah Compliant Mudarabah based Open Market Operations (OMO). This move was aimed at maintaining liquidity in the financial system. The operations were conducted on November 07, 2025, for 7 and 14-day tenors.
Reverse Repo Purchase Details
The central bank carried out the Reverse Repo Purchase (Injection) for 7 and 14-day tenors. For the 7-day tenor, the central bank received 5 bids cumulatively offering Rs90 billion. The rate of return ranged between 11.03 percent to 11.05 percent. The SBP accepted the entire amount at 11.03 percent rate of return.
For the 14-day tenor, the central bank received 13 bids cumulatively offering Rs1,601.2 billion. The rate of return varied between 11.01 to 11.10 percent. The SBP accepted Rs1,500.2 billion against all the 13 quotes at 11.01 percent rate of return. Out of the total amount offered at 11.01 percent, which was Rs643 billion, the SBP accepted Rs542 billion on a pro-rata basis.
Shariah Compliant Mudarabah Based OMO
In addition to the Reverse Repo Purchase, the central bank also conducted a Shariah Compliant Mudarabah based Open Market Operation for the 7 and 14-day tenors.
For the 14-day tenor, the central bank did not receive any bids. However, for the 7-day tenor, the central bank received 3 quotes offering Rs209.9 billion. The rate of return ranged between 11.05 to 11.08 percent. The SBP accepted all the 3 quotes with the entire amount at 11.05 percent rate of return.
Key Highlights
- Total Injection:Rs1,800 billion
- Reverse Repo Purchase:
- 7-day tenor: Rs1,590.2 billion accepted
- 14-day tenor: Rs1,500.2 billion accepted
- Shariah Compliant Mudarabah based OMO:
- 7-day tenor: Rs209.9 billion accepted
- 14-day tenor: No bids received
Impact on the Financial Market
The injection of liquidity by the central bank is expected to have a positive impact on the financial market. By maintaining adequate liquidity, the central bank helps ensure that financial institutions can meet their short-term obligations and continue to support economic activities.
This operation also reflects the central bank’s commitment to managing monetary policy effectively. Through these operations, the central bank aims to stabilize interest rates and prevent excessive volatility in the money market.
Conclusion
The recent actions by the central bank demonstrate its proactive approach in ensuring that the financial system remains stable and resilient. By conducting both Reverse Repo Purchase and Shariah Compliant Mudarabah based OMO, the central bank has successfully injected significant liquidity into the market, which is crucial for sustaining economic growth and financial stability.