June 20, 2013 | Shaba'an 10, 1434


State Bank to buy govt paper in reverse repo

Reuters
Published 2012-08-07 13:04:24

The State Bank of Pakistan — File Photo

statebank-670

The State Bank of Pakistan — File Photo

KARACHI: Pakistan's central bank said it would buy government paper from commercial banks on Tuesday in a three-day reverse repo to inject funds into the money market.

The State Bank of Pakistan did not say how much money it would inject through the open market operation.

The result of the auction will be announced at 10:45 am (0545 GMT) and settlement will be later in the day.

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Comments are closed.

Comments (3)

@AsifAmeer_AP
August 8, 2012 1:49 pm
Afzaal is right. Here's why SBP buying Govt paper is bad. 1. Its the same as printing new money to prop of Govt debt. 2. It puts pressure on the Rupee in the forex market. 3. It encourages the Govt to borrow more by keeping interest rates artificially low. To learn more, google up "Pakistan's Looming Currency Crisis" in TheNew's blog section
Arsalan
August 7, 2012 10:31 am
would you mind the reason behind your view ?
afzaal
August 7, 2012 8:28 am
in my view it will not be better for us that the central bank purchased the govt papers
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