January 29:  The currency in circulation in the market has declined by Rs 16 billion as of mid-January this year compared to the same period of last year. According to Nepal Rastra Bank (NRB), the use of paper money is declining due to the growing use and volume of digital transaction.

The central bank sad that around Rs 616 billion was in circulation in the market during mid-January 2022 which dropped to Rs 600 billion this year.

According to the financial statement of NRB, banknotes worth Rs 312 billion was in circulation by mid-July last year which increased to Rs 649 in mid-October and then it started declining gradually.

Besides the increase in use of digital transaction, NRB’s credit line to banks and financial institutions also declined in mid-December to mid-January resulting in a decline in currency in circulation in the market.

The central bank had invested Rs 271.72 billion on BFIs in mid-July which dropped to Rs 62.26 billion by mid-January. The latest figure includes repo (repurchase agreement) worth Rs 50 billion, refinancing of Rs 12.21 billion and Standing Liquidity Facility (SLF) worth Rs 60 million.