KARACHI:
The State Bank of Pakistan (SBP) injected a combined liquidity of Rs2.17 trillion into the money market on Friday through conventional and Shariah-compliant open market operations (OMOs), indicating continued efforts to maintain system liquidity.
According to the central bank data, the conventional OMO injection amounted to Rs1.97 trillion, offered and fully accepted across two tenors. Banks offered Rs77.6 billion for seven-day tenor at rates ranging between 11.02% and 11.06%, all of which were accepted at 11.02%.
For 14-day tenor, banks offered Rs1.895 trillion at 11.01% to 11.09%, with the SBP accepting the full amount at 11.01%.
Separately, under the Shariah-compliant Mudarabah-based OMO, the SBP accepted Rs201 billion for seven-day tenor at a return of 11.05%, against total bids of the same amount. No bids were received for the 14-day tenor.
The liquidity injections suggest steady demand for short-term funding from banks as interest rates remain at elevated levels and government borrowing requirements continue to shape inter-bank market dynamics.
Gold prices in Pakistan remained steady on Friday, mirroring trends in the international market. Globally, gold held firm after falling over 1% earlier in the session, as traders increased bets on a potential US rate cut in December following dovish comments from the Federal Reserve.
Spot gold was steady at $4,077.19 per ounce as of 11:45 am ET (1645 GMT), after dipping more than 1% earlier in the session, according to Reuters. The precious metal was on track for a weekly loss of 0.1%.
In Pakistan, the per-tola gold rate stood at Rs426,562, while 10-gram gold was priced at Rs365,708, according to the All-Pakistan Gems and Jewellers Sarafa Association. On Thursday, the per-tola rate had declined by Rs5,000, closing at Rs426,562.
Adnan Agar, Director at Interactive Commodities, noted that gold prices briefly touched a low of $4,022 before recovering to around $4,070. “Bullion is under slight pressure, but a technical range has been set. If prices rise above $4,150, further upside is expected; if the downward trend breaks $4,000, prices could revisit $3,950-3,900,” he said.
Agar added that markets typically follow the direction once a range is broken, indicating traders will closely watch for any breakout from the current levels.
The Pakistani rupee showed a slight gain against the US dollar in the inter-bank market, appreciating by 0.01%. It closed at 280.62, up by Rs0.03 from the previous session. On Thursday, the rupee had ended at 280.65.
