Nepal Rastra Bank announced the issuance of Rs 45 billion worth of one-year debt securities through an auction held on July 1, 2026. The move is part of the central bank's regular open market operations aimed at absorbing excess liquidity from the banking system and stabilizing short-term interest rates.
The auction comes amid ongoing concerns about a liquidity surplus in Nepal's banking sector, even as loan demand has remained subdued despite low interest rates. The NRB has identified excess liquidity management as a key challenge heading into the formulation of the next monetary policy.