- Large cash withdrawals ahead of Eid ul Adha led to dried up liquidity with the banks
- Commercial Banks witnessed Rs. 711 billion withdrawal in deposits by July-19 end
State Bank of Pakistan injected Rs. 2.4 trillion into the Banking system for Seven days Friday 9th August 2019. The Cut-off rate for the Injection through Open Market Operation was set at 13.36%, slightly above the Policy Rate.
This is the largest ever Injection by the State Bank of Pakistan in its history. Banking sector remains marred with Dried up liquidity as the Eid Ul Adha Season led to large withdrawals from the bank.
As per the SBP Report, Commercial Banks witnessed a decline of Rs. 711 billion in their deposits in July-2019. Adil Rashid, a Money Market Trader at a local Brokerage House told The Mint Pk that it’s a seasonal swing which has resulted in large cash withdrawals from banks to be consumed at Eid. After Eid, the liquidity at the banks is expected to be eased as Cash comes back to the bank after changing hands.