KARACHI – The State Bank of Pakistan (SBP) has released the Karachi Interbank Offered Rates (KIBOR) as of Friday, June 18, 2021.
These rates, a key benchmark for interest rates in the Pakistani financial system, provide valuable information for financial institutions, investors, and businesses.
As of June 18, 2021, the KIBOR rates for various tenors are as follows:
1. 1-Week Tenor:
• BID: 6.91
• OFFER: 7.41
2. 2-Week Tenor:
• BID: 6.94
• OFFER: 7.44
3. 1-Month Tenor:
• BID: 7.00
• OFFER: 7.50
4. 3-Month Tenor:
• BID: 7.21
• OFFER: 7.46
5. 6-Month Tenor:
• BID: 7.45
• OFFER: 7.70
6. 9-Month Tenor:
• BID: 7.50
• OFFER: 8.00
7. 1-Year Tenor:
• BID: 7.56
• OFFER: 8.06
KIBOR rates play a significant role in the financial markets by influencing interest rates on various financial products, including loans, deposits, and other financial instruments. Financial institutions often use KIBOR as a reference point to determine lending and borrowing rates, making it a crucial component of the interest rate structure in Pakistan.
The rates are indicative of the cost at which banks can borrow from each other in the interbank market, reflecting the prevailing market conditions. The Bid rate represents the rate at which a bank is willing to borrow funds, while the Offer rate signifies the rate at which a bank is willing to lend funds.
These rates are based on the consensus reached among participating banks in the daily KIBOR fixing session. The transparency and accuracy of KIBOR rates contribute to the stability and efficiency of the financial system, providing a reliable benchmark for interest rate determination.
The 1-week and 2-week tenors, with BID rates of 6.91 and 6.94, respectively, reflect short-term borrowing and lending rates. As the tenor extends to 1 year, the rates gradually increase, with the 1-year tenor showing BID and OFFER rates of 7.56 and 8.06, respectively.
Market participants, including banks, financial institutions, and investors, closely monitor KIBOR rates to make informed decisions regarding financial transactions. The rates also serve as a valuable tool for the State Bank of Pakistan in implementing monetary policy and managing interest rate dynamics in the economy.
In conclusion, the release of KIBOR rates by the State Bank of Pakistan on June 18, 2021, provides crucial insights into the current interest rate environment in the country. These rates impact various financial products and contribute to the overall stability of the financial system, playing a vital role in the functioning of Pakistan’s monetary and financial markets.