KATHMANDU, Oct 6: Nepal Rastra Bank (NRB) is going to issue a repo worth Rs 20 billion today. The bank is going to issue the repo for a period of 14 days to prevent a shortage of investible funds in the banking and financial system.
NRB issues short term repos if there is a liquidity crunch in the banking system. NRB has stated that it is going to issue a 14-day repo due to lack of investible funds in the banking and financial system.
Commercial banks, development banks and financial institutions will be able to buy the repo that matures on October 20 through bidding today. Earlier, the central bank had issued a repo worth Rs 30 billion on September 23. Banks and financial institutions use repo, interbank lending and standing liquidity facility (SLF) in case of liquidity crunch.