KATHMANDU: Nepal Rastra Bank (NRB) is issuing a repo worth Rs 30 billion today.
The NRB is issuing the repo for 7 days, and it is maturing on August 4.
The central bank issues repo due to the lack of investable funds in the market, and as per the requirement for liquidity management.
According to NRB, approved banks and financial institutions of categories A, B and C can participate in it through bidding.
Banks and financial institutions can participate in the process by paying a minimum of Rs 100 million.
Banks and financial institutions use instruments such as the repo, interbank swaps, and temporary liquidity facilities to manage the liquidity shortage problem.
If there is a situation of low liquidity in the banking system, the instrument used by NRB to provide short-term (maximum seven days) liquidity is “Repo”.
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