The Nepal Rastra Bank (NRB) has revealed its intention to remove Rs. 45 billion from the financial framework through a 42-day repo auction, aimed at regulating surplus liquidity. The central bank has called for submissions from banks and financial institutions, with the online auction set to commence at 3 PM this Sunday.
The principal amount along with the interest from the auction will be settled on August 17. This action is part of NRB’s continuous liquidity management efforts, as Rs. 310 billion has been previously gathered using various deposit collection mechanisms, still pending maturity.
By utilizing short-term financial instruments like repos, NRB aims to uphold monetary stability while ensuring that the liquidity levels within the banking sector are kept within the desired range.
