Liquidity crunch: Nation Bank is sending liquidity by buying 40 billion Treasury bills directly

6 October, Kathmandu. As the banks’ liquidity crisis deepens, the National Bank is going to directly buy Treasury bills and send liquidity to the market.

Rashtra Bank is going to speak on Thursday, 6 October for the direct purchase of treasury bills worth Rs 40 billion. National Bank is about to send 40 billion rupees into the system through one-time purchases.

Rashtra Bank has informed that tenders can be submitted till 3 pm on Thursday, October 6 and treasury bills will be purchased on Friday, October 7.

According to Nation Bank, when allocating the amount of the direct purchase bid, priority will be given to the highest rate of return of the counterparty bidder and will be allocated gradually up to the requested amount.

However, if the amount of bids with the same annual rate exceeds the total issued amount, the bid amount at that rate will be distributed proportionately.

Rashtra Bank itself is buying treasury bills, which are said to be renewed in the current financial year. However, this time the National Bank is going to infuse liquidity into the system by buying treasury bills.

National Bank, which is renewing old bonds a few days ago, is going to send money to the market this time. Outright purchase is going to happen for the second time this year. Earlier it had given Rs 25 billion to the market.

According to the Central Bank, Nepal government treasury bills will be purchased with payment dates by the end of December 2079.

Source: OnlineKhabar

Himal Sanchar