Steering Central Bank

Although Chiranjibi Nepal has assumed his new role as the Governor of Nepal Rastra Bank(NRB), he has many challenges to face ahead

April 12, 2015, 5:45 p.m. Published in Magazine Issue: Vol: 08 No. -19 April 10- 2015 (Chaitra 27, 2071)

Although Nepal’s financial sector is more or less stable,the newly appointed governor of Nepal Rastra Bank, Chiranjibi Nepal, has challenges galore to deal with from the beginning. The relations between his predecessorgovernor Dr. Yubaraj Khatiwada and commercial bank operatorshad remained chillysince Dr. Khatiwada imposed several restrictions in their bank operations.

Known for his interventionist role, Dr. Khatiwada imposed restrictions and stressed compliance of commercial banks, which many saw was against liberal economy. Dr. Nepal has to change this scenario and smoothen the central bank’s relations with the commercial banks.

Unlike his predecessor, Dr. Nepal, who is not a regular staff of Nepal Rastra Bank, is likely to receive less internal support than his predecessor did. A range of tasks await for him, from formulating a new monetary policy to closely monitoring a large number of banking activities.

Prime Minister Sushil Koirala's Economic Advisor Nepal was an economic advisor at the Ministry of Finance under the erstwhile Khila Raj Regmi-led government. Economist Nepal is considered to have a good understanding of Nepal's fiscal and monetary policies. He had also served as chief advisor to the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).

His success is likely to be dependent upon how closely he works with the two deputy governors, Gopal Prasad Kafle and Maha Prasad Adhikari, who were recommended for the post of governor along with Nepal.

Nepal holds 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. He has already held seven political appointments in the past.

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