The central bank took the step after the interbank rate declined below one percent due to excess liquidity in the sector.
NRB drew Rs 10 billion liquidity on December 6 through deposit collection tool. Moreover, the bank is moping up Rs 25 billion today through deposit collection.
Previously, the bank mopped up excess liquidity of Rs 35 billion in which one instrument with Rs 15 billion is maturing today.
If one take into account the mopped up liquidity, the banks have more than 150 billion excess liquidity. The banks had Rs 121 billion excess liquidity on December 5 and Rs 107 billion on December 6 after NRB mopped up Rs 10 billion liquidity.
