KATHMANDU, Dec 29: Nepal Rastra Bank (NRB) has issued bonds worth Rs 25 billion to manage excess liquidity in the financial system.
The central bank has issued one-year maturity bonds, with bidding open until 2:00 PM on December 29 through the online bidding system. Only banks and financial institutions are eligible to participate in the bidding process.
Revised interest rate corridor system introduced
According to NRB, the interest rate on the bonds will be determined through the bidding process, and interest payments will be made on a semi-annual basis.
The central bank stated that the bond issuance is part of its liquidity management measures, as excess liquidity has accumulated in the banking system. In recent months, NRB has also been using instruments such as the Standing Deposit Facility (SDF) and deposit collection tools to absorb surplus liquidity.
