KATHMANDU, Nov 25: The Nepal Rastra Bank (NRB) is issuing a repurchase agreement (repo) worth Rs 20 billion today.
The repo will mature on December 8. The bank is issuing the repo to prevent the shortage of investment capital in the banks and financial institutions.
The central banks issue repo if there is shortage of liquidity in the banking system. The central bank has been issuing repos continuously for the past some time to address the liquidity crunch in the banking system.
The NRB on November 11 had issued a repo worth Rs 20 billion. According to the central bank, 'A', 'B' and 'C' class banks and financial institutions would buy the repo through bidding.