Nepal Rastra Bank uses Treasury bills and Reverse Repo to withdraw liquidity

Kathmandu November 15- Nepal Rastra Bank is planning to withdraw excess money in banks and financial institutions through Treasury bills and reverse Repo. NRB to issue reverse repo on November 18. NRB uses these instruments of monetary policy to maintain price stability caused by excess liquidity in banks and financial institution due to lack of investment

NRB informed that it will reverse repo of Rs 5 billion for the period of 7 days. Banks and financial institutions buy treasury bills of NRB to transfer excess money to central bank for which they get certain percentage of cash facilities.

Similarly, NRB is also issuing treasury bills to grab excess liquidity from market. Central bank issues such treasury bills on behalf of government. NRB issues 91 days time framed treasury bills worth of Rs. 2 billion 770 million, 181 days time limit treasury bills worth of Rs. 1 billion 283 million 400 thousands and 364 days time framed treasury bills worth of Rs. 2 billion.

More of the same bank will be sold to the Treasury for liquidity has been stealing. The government, the central bank will issue any such treasury. NRB 9 1 Treasury Will 2 billion 77 million, 181 million, 34 million and 364 the lender owes 28 billion Rs 2 billion.