A cabinet meeting held at Prime Minister Sushil Koirala's official residence, Baluwatar, took the decision to this effect, Minister for Information and Communication, Minendra Rijal informed.
Prior to his appointment as NRB governor, Nepal was serving as the Economic Advisor of Prime Minister Sushil Koirala.
Earlier, NRB governor recommendation committee led by Minister for Finance Ram Sharan Mahat had picked three candidates including Nepal for the post. The other two people, who were recommended for the post, were incumbent NRB Deputy Governors Gopal Prasad Kafle and Maha Prasad Adhikari.
The new governor has replaced Yuba Raj Khatiwada, who has taken retirement from today after completing his five-year tenure.
The cabinet meeting held on February 24 had formed a three-member recommendations committee under the chairmanship of Finance Minister Mahat. First NRB governor Himalaya Shumsher JB Rana and economist and former NRB board member Parthibeshwar Prasad Timilsina are the other members of the recommendations committee.
Prime Minister Sushil Koirala's Economic Advisor Nepal was economic advisor at the Ministry of Finance under the erstwhile Khila Raj Regmi-led government. Economist Nepal is considered to have a good understanding on Nepal's fiscal and monetary policies. He had also served as chief advisor to the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
Nepal has a PhD in labor relations and economics and also has experience of teaching in various colleges, including at Kathmandu University. He was chairman of the Securities Board of Nepal (Sebon) from 2007 to 2009. Given his political rapport with the Nepali Congress, he is seen to be a better bet for the main ruling party. However, he has already held seven political appointments in the past.