SBP injects Rs13tr into banking system via OMOs
The State Bank of Pakistan (SBP) injected a total of Rs13 trillion into the banking system through conventional and Shariah-compliant Open Market Operations (OMOs) on July 4, 2025, in a move aimed at maintaining short-term liquidity.
According to official data, the conventional OMO injection amounted to Rs12.647 trillion, accepted at a return rate of 11.03%, with most of the liquidity injected via 14-day tenor instruments.
In parallel, the central bank conducted a Shariah-compliant Mudarabah-based OMO, injecting an additional Rs361.6 billion through 7-day and 14-day instruments at return rates of 11.11% and 11.10%, respectively.
This large-scale liquidity operation reflects massive rupee circulation and an inflationary environment that erodes public buying power.
Meanwhile, the Pakistani rupee posted a slight decline against the US dollar in the interbank market on Friday, slipping by 0.04%. By the day's close, the local currency was quoted at 283.97, down by 11 paisas from the previous session's closing rate of 283.86.
Moreover, gold prices in Pakistan declined on Friday, primarily due to subdued local demand amid Ashura-related closures, even as international bullion markets witnessed a rebound driven by a softer US dollar and renewed safe-haven inflows ahead of potential trade policy moves by former US President Donald Trump.
According to data released by the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), the price of gold per tola dropped by Rs1,500, settling at Rs355,500. Similarly, the rate for 10 grams of gold fell by Rs1,286 to Rs304,783.
The dip in domestic prices contrasts with gains earlier in the week. On Tuesday, gold had risen by Rs800 per tola, reaching Rs357,000.
Adnan Agar, Director at Interactive Commodities, explained that global market activity remained subdued due to a bank holiday in the United States. 'The market is relatively inactive today, with gold trading between $3,325 and $3,344 per ounce. Current levels are hovering around $3,332,' he noted.
Agar added that volatility is expected to return next week when markets reopen, particularly as attention turns to the US president's reinstatement of trade tariffs.
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