Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Prof. Dr. Bishwanath Paudel officially took charge as the 18th Governor of Nepal Rastra Bank on Wednesday, following his oath administered by Chief Justice Prakashman Singh Raut. Paudel assumed office at the central bank’s Baluwatar headquarters after a cabinet decision on Tuesday, based on the recommendation of the Governor Recommendation Committee, appointed him to lead the institution.
Paudel, a noted young economist with expertise in Nepal’s economic history, faces the daunting task of revitalizing a sluggish economy and addressing the banking sector’s challenges with non-performing loans. His first decision as governor was to authorize the printing of new Rs. 50 and Rs. 1,000 banknotes, aimed at enhancing security features and promoting Nepal’s heritage.
Upon taking office, Paudel emphasized the independence of monetary policy, stating, “Monetary policy is not merely a support to fiscal policy; it is a distinct framework. If it obstructs fiscal policy implementation, we will make necessary adjustments.” He underscored the need for reduced regulation and enhanced supervisory capacity at Nepal Rastra Bank to strengthen the financial sector. Paudel also highlighted the importance of formulating an appropriate credit policy and committed to developing monetary policy through stakeholder consultations.
Addressing internal matters, Paudel noted that the resignation of Executive Director Gunakar Bhatt, another contender for the governor role, is being handled internally. Speaking at the central bank on Wednesday, he pledged to operate within the legal framework and avoid conflicts, focusing on effective governance. Paudel further stated that monetary policy would support the government’s fiscal policy objectives, ensuring alignment for economic stability.
The appointment ends months of uncertainty over the central bank’s leadership. Paudel’s immediate focus on new currency notes and his emphasis on supervisory reforms signal a proactive approach to addressing Nepal’s economic challenges, particularly in the banking sector, as the country seeks to restore financial stability and growth.
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