KATHMANDU: The Nepal Rastra Bank (NRB) has issued a repurchase agreement (repo) worth Rs 20 billion today.
The repo will mature after 14 days on December 9. The bank is issuing the repo to prevent the shortage of investment capital in banks and financial systems.
NRB, the central bank, issues repo if there is shortage of liquidity in the banking system. The central bank has been issuing the repo continuously of late to address the liquidity crunch in the banking system.
According to the central bank, ‘A’, ‘B’ and ‘C’ class banks and financial institutions (BFIs) can participate in the auction.
Previously, the NRB had issued a repo worth Rs 20 billion, on November 11.
READ ALSO:
- NRB issues macroeconomic, financial situation report of country based on three months’ data
- Recovery package has positive impact on economy: NRB Governor Adhikari
- NRB conducts study on BFIs; resource mobilisation under federal structure
- NRB to auction Treasury Bills worth Rs 11.2 billion
- Nepal Rastra Bank issuing repo worth Rs 20bn
