Governor Adhikari is unveiling his first monetary policy amid a global economic turmoil caused by the Corona epidemic. The monetary policy for the current fiscal year is scheduled to be made public on Friday.
The private sector is expecting monetary policy to revive the economic downturn caused by the Corona epidemic. It is also the first monetary policy of Maha Prasad Adhikari, who was appointed governor on 6th April for the next four years.
Governor Maha Prasad Adhikari has been saying that the forthcoming monetary policy will focus on financial resources in the areas where domestic production and employment will be promoted and entrepreneurship will be developed.
He informed that while formulating the monetary policy, the 15th plan of the Government of Nepal, financial sector development strategy, policies and programs and budget of the Fiscal Year 2077/78 and the third strategic plan of the bank will be maintained.
Nepal Rastra Bank(NRB) has a policy of formulating monetary policy based on the current situation of the international and domestic economy and the Council.
Amid the uncertainty created by the Covid-19 crisis, monetary policy is being formulated this year. Monetary policy needs to focus on providing priority to the crisis-affected areas and increasing the availability of financial resources for rapid economic recovery.
NRB also has the responsibility of managing monetary and credit so that the monetary policy will help the Government of Nepal to achieve the target of economic growth through the budget.
Monetary Policy Discretionary regulatory measures need to be adopted in the direction of promoting domestic production and employment and concentrating financial resources in areas where entrepreneurship develops and facilitating finance in a way that does not jeopardize price and external sector stability.
Similarly, mergers and acquisitions, which have been adopted as financial consolidation measures to reduce the cost of financial intermediation, need to be accelerated. Reducing cash transactions through digitization will also be a priority for monetary policy, the governor said.
In the current environment where most of the sectors have been affected by COVID-19, the monetary policy has increased the expectation. Against this backdrop, the central bank will have to formulate monetary policy to move the economy forward in a way that maintains external value and financial stability.