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. 25 dated 14th December, 2012. Following changes are announced with reference to these circulars:.

1. There is no change in the SBP Overnight Reverse Repo (Ceiling) rate and will be available at 9.50% p.a.
2. The SBP Overnight Repo rate has been increased from 6.50% to 7.00% 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 7.00% and 9.50% p.a. respectively. (i.e. width of 250bps).
4. Above changes are effective from 11th February 2013.
5. In case an eligible institution accesses either of the above facilities more than 7 times during a given quarter, a spread of plus/minus 50bps will be applied over & above the applicable SBP Overnight Reverse Repo & Repo Rates respectively for the remainder of the same quarter.
6. Other instructions on the subject shall, however, remain unchanged.

Please acknowledge receipt.