NRB Bonds to hit market in a month

KATHMANDU: Nepal Rastra Bank (NRB), the central monetary authority, will soon float NRB Bonds in the market to mop up excess liquidity from the banking sector. NRB Bond is a relatively longer term money market instrument, with maturity period of six months to a year. “We are currently preparing a framework on issuance of the instrument. We hope we will be able to float the first bond after a month,” said Min Bahadur Shrestha, chief of Public Debt Management Department at NRB. Currently, NRB is making use of instruments such as reverse repo, outright sale and term deposit to absorb excess liquidity from the banking sector.