The rate which was 4 percent in the last week has suddenly slipped to one percent this week. ‘Such rate was 1.68 percent last Tuesday which declined to 1.44 percent by Thursday,’ informed Dev Kumar Dhakal, Spokesperson of NRB.
Interbank rate increases during liquidity crunch while decreases during excess liquidity. However, in recent days, the banking sector does not have excess liquidity. The banking sector had Rs 46 billion in liquidity on Tuesday which increased to 54 billion on Wednesday including NRB repo of Rs 20 billion, said Dhakal.
The banking liquidity went as high as Rs 200 billion during the last nationwide lockdown.
However, this time the scenario is different. The government has not implemented prohibitory order in the whole country. Only selected cities are under prohibitory order, thus, a fraction of economic activities are going around which has kept the banking sector busy during this period.
