NRB issues reverse repo worth Rs 10 b
Nepal Rastra Bank (NRB) is issuing reverse repo worth Rs 10 billion for the second time in three years. The bank had issued reverse repo worth Rs 5 billion last week as well.
When the banks are flushed with excess liquidity, the central bank issues the reverse repo in order to manage liquidity and interest rates, according to NRB’s spokesperson Bhaskar Mani Gyanwali.
While the liquidity of the banks is in surplus, the customers are enjoying less interest ondeposits.
Currently, the banks and financial institutions have liquidity worth over Rs 50 billion, according to the central bank. nepalnews.com