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NRB to adopt flexible monetary policy: Rawal BY A STAFF REPORTER Kathmandu, Dec. 12: Nepal Rastra Bank Governor Dr. Tilak Rawal today said the Central Bank was thinking about adopting a flexible monetary policy to maintain stability in the national economy. "The country’s economy is hard pressed at this time and we are considering about a policy that will stop our economy from further affliction," Dr. Rawal told an interaction programme at NRB premises. "We will continue to show flexibility whenever and wherever required." NRB organised the interaction to hear the experiences of the Governor of the central bank of Uganda who is presently in Nepal. Uganda’s central bank Governor Emmanuel Kirenga Baryabota said the government needs to stand firmly behind the Governor and the Finance Minister to speed up economic reform and the overall development of the nation. "The government needs to be aware to keep its promises of going forward." Baryabota said loosening Nepal’s monetary policy further could ruin macroeconomic stability. "Maybe you should focus on fiscal measures." Responding to a query on whether Nepal should open capital account convertibility, Baryabota said, "I don’t think it would be wise to open the capital account now." He said increased manufacturing leading to increased income was the key to reduce poverty in Uganda. Poverty in Uganda came down from 56 per cent in 1991 to 35 per cent in 1999. Liberalisation of coffee marketing played a crucial role to improve the poor people’s quality of life. Baryabota said Uganda legalised the black market, liberalised the current account, privatised the banks and provided autonomy to the central bank to put its economy in track. Uganda has made a remarkable progress during the last decade. The gross domestic product (GDP) increased from 3.4 per cent in 1991 to 7.1 per cent in 1999 while Nepal’s GDP was 4.6 per cent in 1991 which came to 4.8 per cent in 1999. NRB’s Deputy Governor Ram Babu Pant said Nepal would take lessons from Uganda. Other Stories |
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