NRB issuing Rs 20 billion repo to address liquidity crunch

NL Today

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Kathmandu: Nepal Rastra Bank (NRB) is issuing a repurchase agreement (repo) worth Rs 20 billion today.

The bank is issuing the repo to prevent a shortage of investment capital in banks and the financial system. The repo will mature on October 19.

NRB issues short-term repo if there is a liquidity shortage in the banking system.

Before this, NRB had sent Rs 30 billion to market through repo. Banks and financial institutions use the repo, inter-bank lending and Standing Liquidity Facility (SLF) in case of liquidity crunch.

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