Last Updated: Sun, 21.07.13 19:40 Central bank unveils monetary policy, targets limiting currency depreciation to 8 pc Nepal Rastra Bank, the central bank of Nepal on Sunday made public its monetary policy for the fiscal year 2070/71 BS, setting a target of limiting the depreciation of Nepali Rupee to not more than 8 percent. Governor of Nepal Rastra Bank (NRB) Dr. Yubraj Khatiwada speaking in a programme to announce the monetary policy of the new fiscal year 2070/71 in Kathmandu, Sunday. Nepalnews/rh Governor of Nepal Rastra Bank (NRB) Dr. Yubraj Khatiwada speaking ... Currency depreciation, which has emerged as a major problem of Nepali economy, was recorded 9.9 percent in the last fiscal year (2069/70 BS) and 8.3 percent in the previous fiscal year (2068/69 BS). “Our attempt will be to control currency depreciation to a certain level, so that we can achieve the growth rate of 5.5 percent as envisioned by this year’s budget estimates,” said the monetary policy. The policy further targets to control inflation, maintain stability of external and internal financial sectors, lend credits in productive sectors and increase access of people to financial resources. The policy has made it mandatory that the commercial banks lend at least 4.5 percent loan to the poor people. The ratio is 4 percent for development banks and 3.5 percent for the financial companies. The commercial banks will have to invest at least 20 percent amount in productive sector, which also includes at least 12 percent investment in agriculture and energy sector. As for individuals and entrepreneurs, they can now exchange up to USD 10,000 from the local currency exchange agencies and do not have to go to the bank for the same purpose. “The widening trade deficit and fluctuating remittance inflow are the risk factors that may lead us to an imbalance in the Balance of Payment. We have to be, therefore, conscious while we formulate and execute our monetary policy,” said central bank Governor Yubraj Khatiwada. Nepalnews
Posted on: Sun, 21 Jul 2013 14:07:26 +0000
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