KATHMANDU;- Nepal Rastra Bank (NRB) is issuing a repurchase agreement (repo) worth Rs 20 billion today.
The bank is issuing the repo to prevent shortage of investment capital in banks and financial system. The repo will mature on October 19.
NRB issues short-term repo if there is liquidity shortage in the banking system.
Before this, NRB had sent Rs 30 billion in market through repo. Banks and financial institutions use the repo, inter-bank lending and Standing Liquidity Facility (SLF) in case of liquidity crunch.
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