NRB Issuing Reverse Repo worth Rs 1 billion today

December 21: Nepal Rastra Bank is issuing reverse repo of Rs 1 billion today. The bank is issuing the reverse repo in a bid to mop up excess liquidity in banks and financial institutions (BFIs). The reverse repo which is scheduled to float at 2 pm today will mature in 7 days on December 28. The A, B and C listed BFIs can participate in the on-line auction of the reverse repo.

In the recent time, NRB has been issuing short term reverse repo usually of Rs 500 million to mop up excess liquidity in banking system. However, NRB is issuing reverse repo or Rs 1 billion this time. Meanwhile, NRB is also sending liquidity to banking system now and then by issuing repo.