NRB issues yet another reverse repo of Rs 19.5 arba today

ShareSansar, January 23:

Nepal Rastra Bank has issued another reverse repo of Rs 19.5 arba today to mop up excess liquidity in the capital market.

The central bank is issuing the reverse repo through open tender bid for a period of a week.

This is the eleventh time the central bank is issuing a reverse repo this fiscal year to contain surplus liquidity in the market.

With today’s reverse repo, the central bank has already mopped up 1 kharba and 66 arba from the market. But the liquidity scenario is yet to improve.

Even though the reverse repos have been issued at an interest rate below 1 percent, it is still being oversubscribed hugely.

The weighted average interest rate so far has been 0.4933 and the reverse repos have drawn 123 applications.