Nepal's Treasury Needs Money?

 The Nepal government, specifically through the Nepal Rastra Bank (NRB), has recently announced the issuance of Treasury Bills (T-bills) worth Rs. 21.10 Billion. What are these Bills? How do they affect us? And why would the government do this?

Treasury Bills, commonly known as T-bills, are money market instruments in the form of promissory notes, offering guaranteed repayment at a later date. These funds are primarily used to address the government's short-term financial requirements and reduce the overall fiscal deficit of the country. T-bills come in four types based on their durations: 28 days, 91 days, 182 days, and 364 days. Additionally, they serve as a basis for regulators to assess the short-term interest rate of the banking system.

Specifically, the central bank plans to issue T-bills worth eight billion rupees with a maturity period of 28 days, Rs. 8.10 billion with a maturity period of 91 days, and five billion rupees with a maturity period of 182 days. These T-bills can be bid upon and purchased through various Open Market Borrowing Schemes (OBSS).

It's essential to note that T-bills are common financial tools used by governments worldwide, and their issuance is not a matter of great concern, especially when the amounts are significant. These instruments can be employed to manage and regulate the economy, both in terms of domestic and foreign markets. Whether used as a form of monetary policy to stabilize the economy or as a temporary loan to facilitate government operations, it is crucial to anticipate and address any potential consequences and devise appropriate solutions accordingly.

Bibliography: https://www.nrb.org.np/category/public-debt-operations/treasury-bills/