KATHMANDU: Nepal Rastra Bank (NRB) has itself purchased self-issued treasury bills for the fourth time in order to tame interest rates.
The bank self-purchased the treasury bills issued on Monday and worth around Rs 5 billion.
The Central Bank made the purchase of 26-days treasury bills worth Rs 2 billion and 91-days treasury bills worth Rs 2.23 billion.
Similarly, out of Rs 6 billion worth of 182-days of the same bills, the bank has purchased bills worth Rs 150 million while it has sold bills worth of Rs 5.85 billion to other banks and financial institutions (BFIs).
Moreover, it purchased Rs 1.50 billion worth of 364 days treasury bills and has sold bills worth Rs 500 million to other BFIs.
Since the Central Bank started to purchase treasury bills itself, the interest rate is falling.
The rate which once reached nearly 14 percent has come down to 9 percent. The rate is maintained at 8.70 percent for 88 days treasury bills, 9.08 percent for 91 days bills, 9.02 percent for 182 days bills and 9.02 per 364 days bills.
NRB began to self-purchase treasury bills after BFIs bid inflated interest rate for them.