The Presidents/ Chief Executives,

All Commercial Banks/ Primary Dealers

Dear Sirs/ Madam,

SBP Overnight Repo / Reverse-Repo Facilities

Please refer to DMMD Circular No.1 dated 15th August 2009 and Circular No 3 dated 24th November, 2009. Following changes are announced with reference to these circulars:

1. The SBP Overnight Reverse-Repo (Ceiling) rate has been increased from 12.50% to 13.00% p.a.
2. The SBP Overnight Repo facility will be available at 10.00% p.a. This will serve as the ‘Floor’ for the Interest Rate corridor as announced by the above referenced circular.
3. Hence, the Floor and Ceiling levels for the interest rate corridor are 10.00% and 13.00% p.a. respectively (i.e. width of 300 bps).
4. Above changes are effective from 2nd August 2010.
5. Other instructions on the subject shall, however, remain unchanged.

Please acknowledge receipt.