Section 45: Operation of Open Market Transaction

1) After forging an agreement, the Bank shall operate the open market transaction so as to immediately purchase or sell the debenture issued on behalf of the Government of Nepal or the debenture issued or fixed by the Bank, or to purchase or sell later.

2) While operating open market transactions as per sub-section (1), the Bank can also carry out the work of short-term liquidity management by forging a repurchase agreement or a reverse repurchase agreement upon the security of the debentures of the Government of Nepal or the letter of credit issued by the Bank itself.

3) The Bank can issue other appropriate instruments for the sake of the operation of the open market transaction.