| GEO Business|
| SBP OMO siphons off Rs15 billion|
| Updated at: 1450 PST, Wednesday, March 11, 2009|
KARACHI: State Bank of Pakistan (SBP) has mopped up Rs15 billion from the banking system by undertaking open market operation (OMO).
The Central Bank through market operation issued Treasury Bills for one day at 9.9 percent repo rate for absorbing the additional liquidity from the banking system. Banks had offered to buy T-Bills worth Rs20 billion, but the Central Bank stabilizing the interest rate preferred accepting banks’ offer of Rs15 billion at 9.9 percent repo rate.
Money market dealers said SBP could resort to OMO in future also for soaking out the additional liquidity.