| GEO Business|
| SBP injects Rs23.55b to wipe out liquidity crunch|
| Updated at: 1258 PST, Saturday, April 04, 2009|
KARACHI: State Bank of Pakistan (SBP) has bought back Rs23.55 billion of Treasury Bills under two-day reverse repo contracts at 12.85 percent to inject liquidity into a tight money market.
The banks in response to the Central Bank’s open market operation for wiping out liquidity crunch offered to sell T-Bills worth Rs39.75 billion.
Money market dealers said that following the payments of Rs51 billion to the Central Bank on account of maturities of T-Bills, the banking system was staved of liquidity and, therefore, the Central Bank through OMO provided them Rs23.55 billion under two-day reverse repo contracts at 12.85 percent.