KARACHI: The central bank on Monday injected Rs 10.5 billion into the money market through four-day reverse repo.

The commercial banks also borrowed billion of rupees through the State Bank’s discounting window. The SBP injected money at 12.61 percent.

A day earlier, the central bank also injected an amount of Rs 36.47 billion in the banking system to counter shortage of liquidity faced by the commercial banks. The dealers demand Rs 13.5 billion from the State Bank.

“Shortage of liquidity would continue in the money market till Eidul Fitr,” said a money market expert. Banks’ customers are withdrawing their huge amounts from their accounts as Eidul Fitr is approaching and shopping activities are on the peak.

There would be a maturity of around Rs 98 billion in the money market on Thursday, the experts said. At the same day, there is also an outflow of Rs 6.52 billion of the tender for Sale of 3-year Ijara Sukuk. On Wednesday, SBP will have to invite tenders worth Rs 95 billion through regular T-Bills auction.

The overnight rate stayed at 12.90 percent in the money market. Dealers said the primary dealers demand Rs 43.97 billion from the central bank to cover their shortage and cash requirement. “In the T-bills auction yields are likely to remain stable. Even if there is an increase, it will only be marginal,” said a dealer.