State Bank mops up Rs5bn through OMO, rates inch up
THE State Bank of Pakistan on April 7, mopped up Rs5 billion from the money market. The central bank conducted the Open Market Operation (OMO) to suck up the over liquid market where the prevailing overnight rate was 0.25 per cent. However, the outflow of Rs5 billion could not bring any significant change as the overnight rate inched up to 0.75 per cent only.
According to the Statement of Affairs of the State Bank of Pakistan, for the week ended March 26, 2005, both notes in circulation and those issued decreased in the week. Notes in circulation stood at Rs710,677.411 million against earlier week’s figure of Rs715,431.791 million, a fall of Rs4,754.38 million. When compared to the corresponding week a year ago when it was Rs609,612.143 million, the current week’s figure is higher by Rs101,065.268 million.
Total notes issued also declined in the current week over preceding week’s level. At Rs710,840.541 million it was smaller by Rs4,812.392 million over the figure of Rs715,652.933 million recorded a week earlier. In the corresponding week last year it amounted to Rs609,736.754 million, which shows the current week’s figure to be higher by Rs101,103.787 million over last year’s corresponding figure.
Approved foreign exchange increased in the week to Rs490,541.650 million or by Rs58.896 million over preceding week’s figure of Rs490,482.754 million. When compared to the corresponding week a year ago, when the figure was Rs522,037.545 million, the current week’s figure was smaller by Rs31,495.895 million.
Balances held outside Pakistan in approved foreign exchange fell further in the week under review. It stood at Rs129,321.672 million over preceding week’s figure of Rs131,315.523 million, a fall of Rs1,993.851 million. Compared to last year’s corresponding figure of Rs129,599.974 million, the current week’s figure is smaller by Rs278.302 million.
Loans and advances of scheduled banks to the three sectors – agricultural, industrial and export showed a mixed trend in the week under review. The agricultural sector received Rs59,009.437 million similar to preceding week’s figure. The current week’s figure is larger by Rs3,333.898 million over last year’s corresponding figure of Rs55,675.539 million.
There was an inflow of Rs1,258.577 million to the industrial sector during the week under review, similar to preceding week’s figure. When compared to last year’s corresponding figure of Rs2,393.844 million, the current week’s figure is lower by Rs1,135.267 million.
The export sector received Rs106,683.827 million against previous week’s figure of Rs106,096.466 million, a rise of Rs587.361 million. Current week’s figure was larger by Rs27,239.134 million over last year’s corresponding figure of Rs79,444.693 million.
According to the weekly statement of position of scheduled banks for the week ended March 26, 2005, the sum of demand and time liabilities rose in the week under review. The sum total stood at Rs2,357,012 million against preceding week’s Rs2,341,185 million, a rise of Rs15,827 million. As compared to the total deposits of Rs1,946,343 million in the corresponding period last year, current week’s deposits were higher by Rs410,669 million.
During the week under review, demand deposits stood at Rs1,233,635 million, a rise of Rs18,498 million over previous week’s Rs1,215,137 million. It was also higher against last year’s corresponding figure of Rs978,845 million by Rs254,790 million.
Time deposits declined in the current week. At Rs1,123,377 million it was smaller by Rs2,671 million over previous week’s Rs1,126,048 million but higher Rs155,879 million over last year’s corresponding figure of Rs967,498 million.
Scheduled banks borrowings from the State Bank of Pakistan against promissory notes and other approved securities rose in the current week. At Rs177,220 million it was higher by Rs1,676 million over preceding week’s Rs175,544 million. Compared to last year’s corresponding figure of Rs150,867 million, the current week’s figure is higher by Rs26,353 million.
Scheduled banks borrowings from banks abroad stood at Rs7,245 million in the current week, as against Rs7,065 million a week ago, a rise of Rs180 million. It was also higher by Rs2,818 million over last year’s corresponding figure of Rs4,367 million.
Money at call and short notice in Pakistan fell in the week under review as against previous week’s figure. It stood at Rs31,010 million, a fall of Rs5,553 million over preceding week’s Rs36,563 million. When compared to last year’s corresponding figure of Rs32,249 million, the current week’s figure is smaller by Rs1,239 million.
Scheduled banks’ advances including bills purchased and discounted increased in the week under review. At Rs1,688,599 million it was higher by Rs14,358 million over preceding week’s Rs1,674,241 million. Compared to the corresponding figure a year ago, when advances were to the tune of Rs1,211,416 million, the current week’s advances are higher by Rs477,183 million.
Scheduled banks investment in central government securities, Treasury bills and other approved securities showed a fall in the current week when compared to preceding week’s level. Such investments amounted to Rs652,473 million, a fall of Rs6,188 million over previous week’s Rs658,661 million. Compared to last year’s corresponding figure of Rs757,615 million, the current week’s investment is smaller by Rs105,142 million.
Total assets of scheduled banks increased in the week under review. These stood at Rs3,342,621 million against previous week’s Rs3,330,709 million, a rise of Rs11,912 million. Compared to last year’s corresponding figure of Rs2,770,951 million, it shows a rise of Rs571,670 million.
