KATHMANDU, Jan 12: Nepal Rastra Bank (NRB) has continued issuing bonds to manage excess liquidity in the banking system, floating one-year bonds for the seventh time in the past two weeks.
The central bank on Monday issued bonds worth Rs 25 billion. With this latest issuance, NRB has floated a total of Rs 155 billion worth of one-year bonds over the past two weeks as part of its liquidity management measures.
Revised interest rate corridor system introduced
Banks and financial institutions have been invited to submit bids for the bonds through an online bidding system. Bids can be submitted until 2:00 pm, and the interest rate will be determined through the bidding process.
Investors will receive interest payments on the bonds on a semi-annual basis.
NRB began issuing one-year bonds from December 29 to absorb surplus liquidity from the banking sector.
