The State Bank of Pakistan (SBP) injected Rs656 billion into the banking system through a two-day conventional reverse repo Open Market Operation (OMO) to address short-term liquidity requirements.

According to the auction results, the central bank accepted the entire Rs656 billion offered by market participants. The operation was conducted at a cut-off rate of 11.54%, with bids received in a range of 11.54% to 11.62%. A total of seven bids were submitted and all were accepted.

An Open Market Operation is one of the SBP's key monetary policy tools used to manage liquidity in the banking system. Under a reverse repo injection, the central bank provides short-term funds to banks and primary dealers against eligible government securities as collateral.

The eligible securities for conventional OMO injections include Market Treasury Bills (MTBs) and Pakistan Investment Bonds (PIBs), enabling financial institutions to meet temporary liquidity needs while supporting the smooth functioning of the money market.

The latest liquidity injection reflects the SBP's ongoing liquidity management operations to maintain stability in the financial system.