Nepal Rastra Bank (NRB) would issue a repo worth Rs 20 billion today, according to the bank. For a period of 14 days, the bank will issue the repo in order to avoid a scarcity of investible money in the banking and financial system.
In the event of a liquidity crunch in the banking sector, the NRB will issue short-term repos. The National Reserve has said that it will issue a 14-day repo in order to address a shortfall of investible money in the banking and financial sector.
Interested commercial banks, development banks, and financial institutions will have the opportunity to bid on the repo that matures on October 20 during today’s auction. On September 23, the central bank had issued a repurchase agreement (repo) of Rs 30 billion. In the event of a liquidity crunch, banks and financial institutions will turn to repo, interbank lending, and the standing liquidity facility (SLF).