The State Bank of Pakistan on Tuesday, allowed Development Finance Institutions (DFIs) to participate in open market operations (OMOs) to facilitate liquidity management.
Central Bank’s Domestic Market and Monetary Management Department through its circular permitted DFIs taking part in Open Market Operations like schedule banks and primary dealers.
“Accordingly, DFIs would also be eligible to participate in OMOs as per instructions and procedure for OMOs stipulated in master circular of July 2017,” the circular read while referring to the consolidated set of instructions the central bank has issued to facilitate participating institutions.
Under monetary policy implementation measures SBP conducts OMO for maintaining liquidity in monetary market while keeping overnight repo rate close to the SBP Target ‘Policy Rate’.—APP
