DMMD Circular No. 13 of 2013 |
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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. 02 dated 08th February, 2013. Following changes are announced with reference to these circulars:
- The SBP Overnight Reverse Repo (Ceiling) rate has been reduced from 9.50% to 9.00% p.a.
- The SBP Overnight Repo facility will be available at 6.50% p.a. This will serve as the ‘Floor’ for the Interest Rate corridor as announced by the above referenced circular.
- Hence, the Floor and Ceiling levels for the Interest Rate Corridor are 6.50% and 9.00% p.a. respectively. (i.e. width of 250bps).
- Above changes are effective from 24th June 2013.
- 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.
- Other instructions on the subject shall, however, remain unchanged.
Please acknowledge receipt.
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Yours Sincerely,
Sd/-
Muhammad Ali Malik
Director
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