SBP injects Rs11.6tr into banking system

According to The Express Tribune, the State Bank of Pakistan pumped roughly Rs11.6 trillion of liquidity into the banking sector on Monday through reverse repo operations under its open market activities. A tally by AKD Securities of SBP figures shows the central bank took in bids of Rs11,777 billion and allotted Rs11,613 billion across both maturities. Lenders offered Rs31 billion for the four-day maturity, and the full amount was accepted at 11.54%.

The 14-day maturity drew offers of Rs11,746 billion, and Rs11,583 billion was taken at the 11.51% cut-off. Of the Rs5,652.7 billion bid at exactly that rate, the SBP accepted Rs5,484.15 billion on a pro rata basis. Elsewhere, the rupee gained three paisa against the dollar to close at 277.62, having settled at 277.65 on Thursday. The dollar index dipped 0.1% to 99.519, close to its monthly low.

Gold prices in Pakistan moved higher with international rates, and the metal has climbed 9% this August, reaching about $4,400 per ounce. Locally, gold per tola rose Rs2,000 to Rs461,936, while ten-gram gold climbed Rs1,715 to Rs396,035, according to the All-Pakistan Gems and Jewellers Sarafa Association. Silver added Rs80 to reach Rs7,029 per tola. An HSBC analyst linked the size of the recovery to fresh buying by central banks.