Nepal Rastra Bank sold Rs 20 billion worth of one-year bonds on July 6, 2026, to mop up excess liquidity sitting in banks and financial institutions. The move follows earlier bond issuances totalling Rs 105 billion in the preceding week, indicating the central bank is actively using open-market operations to keep liquidity in check.
Excess liquidity in the banking system has persisted even as loan demand has remained weak, a trend analysts attribute to structural economic problems rather than the cost of credit alone. The NRB has been balancing the need to support the government's growth agenda with its mandate to maintain financial stability.