The State Bank of Pakistan (SBP) Monday again injected Rs 33.85 billion in the banking system for four days through a reverse repo (open market operation). Whereas on last Saturday the central bank injected Rs 19.95 billion.
The primary dealers have offered Treasury bills worth Rs 42.5 billion, but the central bank accepted bids of Rs 33.85 billion at 12.85 percent per annum.
The banking system is facing a liquidity shortage for the last few days because of higher outflows, the dealers said. The rupee has been supported by higher remittances sent home by Pakistanis working abroad.
According to SBP this week, remittances rose more than 24 percent to $4.531 billion in the first six months of the (July-June) financial year.
The dealers said that the rupee might further lose strength to more than 85 percent to the dollar if global oil prices start rising again.