The central bank should be addicted to financial stability : Dr. Chiranjeevi Nepal
Banking Khabar / Previous Governor of Nepal Rastra Bank Dr. Chiranjeevi Nepal has focused on the need for the central bank to be addicted in financial stability as people have more trust in the policy of Nepal Rastra Bank than in the budget of the government. He said that the Deuba government should update the budget brought by the KP Oli government through an ordinance in a timely manner. Through a webinar program organized by Media International on ‘Renaissance and Strong Economy’ was told by Previous Governor Nepal.He said that he did not believe the current government will be accept the budget which was brought by the KP Oli government. As the government was changed due to lack of political stability and the budget came from the ordinance, the current government is not in the position to the implement the budget was also stated by Him. Dr. Nepal said that it is necessary to reduce the expenditure by making some changes in the budget. He forced that the government should bring relief package. He said that the government should bring relief funds from the monetary policy rather than the monetary policy. The monetary and inflection policy should be stable, the previous governor Nepal said that the previous year’s monetary policy worked smoothly. He said that all the countries of the world has been brought health and economic rehabilitation packages in their budgets, only our country Nepal could not bring health and economic rehabilitation packages. He said that the budget has not been able to support the economy and increase the self-reliance from lower class to businessmen.
According to him people should not expect much more from the central bank as the central bank is working to make the deposits safe by regulating and supervising banking and not banking transactions. He said, “Where we have the practice of banking-roll only by the central bank, it is not a matter of refinancing but of securing banks and financial institutions by regulating and supervising them for financial stability.” He said that if the central bank will start sinking then banks should rescue.
The reason people trusting to bank is due to financial stability, he said that for hold inflection the central bank should be responsible. He said that the central bank has been being stronger for the past few years due to its excellence policy. All around the world people have more trust in the central bank than in the budget because there is a worldwide perception that it supports and continues, including protection,” he said. According to him “The budget does not protect, the central bank have a responsibility to protect the financial sector and move the economy forward, that’s why it is very sensitive,”. He also mention that every policy which was taken by the central bank will be long-term and effective. He said that the central bank has not been able to regulate and supervise flow of money in the citizens’ investment fund, savings fund and other fund,moreover, the sector also come under regulation and supervision. At the same program, another previous governor of Nepal Rastra Bank, Mr. Dipendra Bahadur Chhetri, said that the new government should led by Sher Bahadur Deuba bring an acceptable budget.In a virtual program which was organized by Media International ‘Revival and Strong Economy’, the previous governor said that the current government should bring own budget as the KP Oli-led government had been brought the budget through an ordinance. He said, “The Deuba government should bring an acceptable budget.” All the projects of national pride have not been successful from the past seven or eight years and it should be included in the current budget has been told by him. According to KP Oli government order Jestha 15 the budget of Rs. 16 kharba 47 Arab, the government did not able borrow the money from the bank, is said by him.
Through exchanging cash from bank and it can be utilized in private sector’s said by him. Stating that the revenue policy is now rectangular, he said that the budget has given support to the rectangle. He hoped that the monetary policy which was introduced by Nepal Rastra Bank would bring appropriate schemes.He said that it was necessary to move ahead by creating a transition between the Ministry of Finance, NRB and industrialists. Stating that the monetary policy should control the inflation, he also suggested that the monetary policy should move forward in a helpful manner.