Nepal Rastra Bank amends open market transaction procedures
KATHMANDU:- Nepal Rastra Bank has implemented the Open Market Transaction Procedures (Ninth Amendment) to make open market operations more effective, transparent and technology-friendly.
The revised procedures clarify provisions related to the use of monetary instruments, bidding, securities management, payments, online participation and long-term liquidity management.
Under the new arrangement, banks and financial institutions can now participate in open market transactions through an online bidding system, alongside the existing paper-based process, making transactions faster and more transparent.
The Open Market Operations Committee will meet every Friday to review liquidity conditions and decide on measures to manage excess or shortage of liquidity in the banking system.
The amendment also streamlines the operation of monetary policy instruments, including repo, reverse repo, outright purchase, outright sale, long-term repo and long-term deposit collection.
