Nepali central bank urged for balanced, flexible monetary policy
Friday, 20 July 2007
KATHMANDU, July 19 (Xinhua): Bankers and entrepreneurs in Nepal have urged the Nepal Rastra Bank (NRB) to devise a "balanced and flexible" monetary policy for the current fiscal year starting on July 17, in order to give an impetus to sluggish economy.
According to a report of the Himalayan Times today, they also asked the central bank to ease the provisions of foreign exchange on import of industrial materials from India, take initiative to increase interest rates on savings as well as set a projection of exchange rates for the period of at least one year.
Diwakar Golchha, first vice-president of the Federation of Nepalese Chambers of Commerce and Industry stressed the need of overhauling overall economic and fiscal policies for the balanced and sustainable development.
"Economy has caught into a vicious cycle and growth has stagnated due to the imposition of the one-sided policies," he said.
He was critical of the current policy, saying it has victimised a larger number of depositors in the name of reducing high level of non-performing assets in the banking sector.
"The depositors are less paid in terms of interests for their savings or deposits in the bank, mainly because of unilateral imposition of one-sided policies," Golchha said.
According to a report of the Himalayan Times today, they also asked the central bank to ease the provisions of foreign exchange on import of industrial materials from India, take initiative to increase interest rates on savings as well as set a projection of exchange rates for the period of at least one year.
Diwakar Golchha, first vice-president of the Federation of Nepalese Chambers of Commerce and Industry stressed the need of overhauling overall economic and fiscal policies for the balanced and sustainable development.
"Economy has caught into a vicious cycle and growth has stagnated due to the imposition of the one-sided policies," he said.
He was critical of the current policy, saying it has victimised a larger number of depositors in the name of reducing high level of non-performing assets in the banking sector.
"The depositors are less paid in terms of interests for their savings or deposits in the bank, mainly because of unilateral imposition of one-sided policies," Golchha said.