Karachi, Pakistan – On Friday, the State Bank of Pakistan (SBP) released the official exchange rates for December 31, 2021, offering customers essential information based on the weighted average rates of commercial banks.
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SBP issues KIBOR rates on December 30, 2021
KARACHI: State Bank of Pakistan (SBP) on Thursday issued the Karachi Interbank Offered Rates (KIBOR) as of December 30, 2021.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 9.76 10.26 2 – Week 9.81 10.31 1 – Month 9.88 10.38 3 – Month 10.29 10.54 6 – Month 11.22 11.47 9 – Month 11.21 11.71 1 – Year 11.29 11.79 -
Pakistan’s foreign exchange reserves fall to $24.27 billion
KARACHI: Pakistan’s foreign exchange reserves experienced a significant decline of $360 million during the week ending December 24, 2021, according to the State Bank of Pakistan (SBP). The drop in reserves highlights ongoing challenges in managing the country’s external accounts amid fluctuating global economic conditions.
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Customers’ exchange rates on December 30, 2021
Karachi, Pakistan – On Thursday, the State Bank of Pakistan (SBP) disclosed the official exchange rates for December 30, 2021, providing customers with crucial information based on the weighted average rates of commercial banks.
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Bank holiday on January 03, 2022 announced
KARACHI: The State Bank of Pakistan (SBP) on Thursday announced bank holiday on Monday January 03, 2022.
Through communication, the SBP said it will remain closed for public dealing on Monday, January 3, 2022, which will be observed as ‘Bank Holiday’.
All banks / Development Financial Institutions (DFIs) / Microfinance Banks (MFBs) shall, therefore, remain closed for public dealing on the aforementioned date.
However, employees of banks / DFIs / MFBs will attend the office as usual, the SBP added.
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SBP introduces Shariah compliant OMO injections
KARACHI: The State Bank of Pakistan (SBP) on Wednesday introduced Shariah Compliant Standing Ceiling facility and Open Market Operations (OMO) injections for Islamic banking Institutions (IBIs).
As the size of the Islamic banking industry is increasing, SBP recognizes the need to introduce Shariah compliant liquidity facilities for IBIs. With a view to bring IBIs at par vis-à-vis their conventional counterparts in terms of liquidity management avenues, and to enhance SBP’s tools for managing market’s liquidity as part of its monetary policy objective, SBP has introduced the aforementioned facilities.
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The structure and broad features of these facilities are as under:
Shariah Compliant Standing Ceiling Facility is a Mudarabah based Financing Facility (MFF) whereby SBP will provide financing to IBIs on an overnight basis against Shariah compliant collateral. IBIs shall place the funds received from SBP in a special pool consisting of high quality assets. The MFF will be offered at an ‘Expected Rate’ – equivalent to conventional overnight reverse repo rate – based on a Profit Sharing Ratio agreed between the SBP and IBI at the onset of the transaction.
For Shariah Compliant Open Market Operations (Injections), Mudarabah mode of financing will be used. It would be pertinent to mention here that this open market operations (OMO) facility will currently be available for ‘injection’ i.e. provision of liquidity purposes only.
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Similar to conventional OMOs, SBP will be conducting Shariah Compliant OMOs (Injections) based on market liquidity conditions through a multiple price competitive bidding process for tenors as announced by SBP from time to time, against collateral. Once the expected rate of return is finalized through a competitive bidding process, the funds provided by SBP shall be invested in a pool of high quality assets by the respective IBI. SBP and IBI shall agree a Profit Sharing ratio at the onset of the transaction.
Islamic banking industry in Pakistan has become systemically an important component of the banking industry registering remarkable growth over the last two decades. Currently there are five (5) full-fledged Islamic banks and seventeen (17) conventional banks operating with standalone Islamic banking branches offering a wide array of Shariah compliant financial solutions.
READ MORE: Meezan Bank starts Islamic financing scheme for SMEs
At the end of June 2021, the market share of the Islamic banking industry assets and deposits in the overall banking sector stood at 17 per cent and 18.7 per cent respectively and the branch network of Islamic banking institutions comprised over 3,583 branches and 1,562 windows.
Introduction of aforesaid liquidity facilities will bring Islamic Banking industry at par with their conventional counterparts and enable them to effectively manage their short-term liquidity.
This would strengthen financial intermediation by IBIs and enable them to offer better returns and rates to their customers on deposits and loans. Further, introduction of proposed facilities will also strengthen monetary policy transmission mechanism & enhance the effectiveness of monetary policy implementation by SBP to achieve the ultimate objective of price stability.
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SBP issues KIBOR rates on December 29, 2021
KARACHI: State Bank of Pakistan (SBP) on Wednesday issued the Karachi Interbank Offered Rates (KIBOR) as of December 29, 2021.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 9.74 10.24 2 – Week 9.80 10.30 1 – Month 9.87 10.37 3 – Month 10.17 10.42 6 – Month 10.89 11.14 9 – Month 10.96 11.46 1 – Year 11.12 11.62 -
Customers’ exchange rates on December 29, 2021
Karachi, Pakistan – On Wednesday, the State Bank of Pakistan (SBP) unveiled the official exchange rates for December 29, 2021, providing customers with essential information based on the weighted average rates of commercial banks.
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SBP issues KIBOR rates on December 28, 2021
KARACHI: State Bank of Pakistan (SBP) on Tuesday issued the Karachi Interbank Offered Rates (KIBOR) as of December 28, 2021.
Following are the latest KIBOR rates:
Tenor BID OFFER 1 – Week 9.72 10.22 2 – Week 9.77 10.27 1 – Month 9.84 10.34 3 – Month 10.12 10.37 6 – Month 10.80 11.05 9 – Month 10.86 11.36 1 – Year 11.07 11.57 -
FBR to facilitate duty, tax payments on Dec 30, 31
ISLAMABAD: The Federal Board of Revenue (FBR) on Tuesday announced to facilitate taxpayers by directing tax offices to observe extended working hours on December 30-31, 2021.
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