SBP injects Rs485.550 billion in the market

Published Aug 17, 2012 11:22am

The State Bank of Pakistan — File Photo
The State Bank of Pakistan — File Photo

KARACHI: The State Bank of Pakistan (SBP) through reverse repo open market operation, in treasury bills and Pakistan Investment Bonds, has injected Rs485.550 billion in the banking system.

According to SBP here Friday, the offered amount was Rs485.550 billion while the rate of return for seven days stood at 9.95 per cent and for 14 days at 10.10 per cent per annum.

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Comments (4) (Closed)


Khalid
Aug 17, 2012 02:46pm
this is Pakistan, where every body is corrupt by choice or not.
AmirDewani
Aug 17, 2012 12:13pm
By injecting 485.550 billion rupees worth of currency the SBP is virtually injecting so many doses of poison in the body of the Pak-economy. Simply speaking when too much fake money chases too few goods in the market, the obvious outcome has to be inflation. The state bank has no authority to go on printing money in the name of stimulating the economy. The government must have sufficient gold and foreign exchange reserves to back the blind-borrowing. And this is not going to boost up jobs or putting money in the pockets of those with fixed income, salaries and pensions. This amount in billions is neither going towards developing reads, bridges, electricity installations or dams. Those who are capable of sucking such funds at such cost are the banks who lend billions onward to the big oil companies and even the bankrupt government. No new technology, means of communication or any support service developments to boost trade, small industries or to generate price competition advantages to promote exports. Because the SBP seems to be losing sight of the need to reform banking sector. The SBP seems to ignore the recent down grading of credits of the government and the five big banks by Moody's. And there is a lack of effective audit capacity or the means to check the risk management and capital adequacy by applying stress tests on banking institutions of Pakistan. The major portion is likely to fall in the hands of the corrupt ones to be spent in buying votes in the on coming election drama. Take it from me. I have been writing comments on this score, but they hardly get through the hands of your moderators. Anyway, what is right, is right. An spade is a spade.
Khan65
Aug 19, 2012 11:17am
Get ready for further inflation and unemployment people :(
hira
Aug 20, 2012 04:13pm
an ineffective step indeed...!