NRB to issue Repo worth Rs.15 Arba today to tackle the issue of liquidity crisis in BFIs; Repurchase Agreement matures in a period of 1 week
To address the growing issue of liquidity crisis in Banking and Financial Institutions (BFIs), Nepal Rastra Bank (NRB) will be issuing Repurchase Agreement (Repo) worth Rs.15 Arba.
The agreement will mature within a period of seven days. NRB will be issuing the agreement via auction on 5th Baisakh, 2076 i.e. today at 3 PM. The security that matures on 12th Baisakh, 2076 carries an interest rate of 5% as set by the NRB.
Only ‘A’, ‘B’ and ‘C’ Class BFIs are eligible to take part in the action of the security. NRB has been issuing Repo Agreements to flow short term liquidity in BFI’s to enable them to take active part in investing activities.
Past week, NRB has issued Repo worth Rs.10 Arba to regulate liquidity flow in the market. The agreement will mature on Thursday i.e. today.
