Central Bank Issues Reverse Repo Again

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Central Bank Issues Reverse Repo Again

July 31: Nepal Rastra Bank (NRB) has been repeatedly mopping excess liquidity from banks and financial institutions (BFIs) since the last three months.

In this regard, NRB on Thursday (July 30) issued reverse repo of Rs 20 billion with maturity period of one week. The reverse repo will mature on August 6.

The central bank had also issued reverse repo of the same amount recently on July 23.

Of late, BFIs have reported more deposits while the flow of loan has not been proportionate, thereby causing excess liquidity. According to NRB, banks have excess liquidity of Rs 200 billion at present.

 

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