Interbank Interest Rate Rises to 6% Following Reverse Repo Release

The interbank swap rate rose from 2% to 6% following the release of a reverse repo aimed at drawing increased liquidity.

The interbank interest rate has increased after the Nepal Rastra Bank (NRB) issued a reverse repo. The rate, which had fallen to 2 percent, has now reached 6 percent.

According to bankers, there is currently a shortage of Rs 13 Arba in the market. To address this shortage, banks have started engaging in debt transactions with each other.

Starting from the second day of the week, the interbank interest rate began to rise. Initially at 2 percent, it increased to 4 percent and has now reached 6 percent.

After the NRB issued continuous reverse repo measures to draw out excess liquidity of Rs. 40 Arba from the market, the rate decreased somewhat. The Rastra Bank had implemented repo repos to prevent the interbank rate from falling below the interest rate corridor. Thanks to the NRB's initiative, the interbank loan rate has reached 6 percent.