Newly-appointed governor of Nepal Rastra Bank, the central bank, Dr Yubaraj Khatiwada thinks there is enough liquidity in the market, but added, "There seems to be some problem as cash is out of the banking system."
"The central bank will try to find the reasons why banks have failed to attract liquidity," said the 15th governor of the central bank after assuming office here today. He also urged entreprenuers not to advise the central bank how to use monetary tools. "Nepal Rastra Bank (NRB) itself competent enough to use those tools as and when necessary," said the governor who did his PhD in monetary economics from Delhi University in 1991. "The central bank will improve its efficiency and supervision capacity."
There has been a positive expansion of the banking system but still one-third of the population has no access to of the banking channels, he said adding that the price hike can be tamed.
The cabinet on Friday appointed Khatiwada the 15th governor of the central bank that had remained without a governor for almost two months after governor Vijaya Nath Bhattarai's retirement on January 31. Dr Khatiwada He was vice-chairman of National Planning Commission (NPC).
Khatiwada has to work hard to meet the challenges facing the economy that is not in a good shape since recent months. The challenges include not only the depleting forex reserve, negative Balance of Payment (BoP), double-digit inflation and exposure of financial instituions to riskier sectors but also implementating strict regulations and supervising the mushrooming financial institutions.
Although it might not be very hard for him to face these challenges as he has had a long career in the central bank and retired as executive director from the central bank only a year ago, Khatiwada sure has a long list of problems that needs his immediate attention.
In absence of a governor, the central bank has not been able to publish the mid-term evaluation of the Monetary Policy that needs a serious rethink.
The government had formed a committee to recommend names for a possible governor, according to the Nepal Rastra Bank Act. The committee recommended Dr Khatiwada, vice-chairman of National Planning commission (NPC), finance secretary Rameshwor Khanal and deputy governor Bir Bikram Rayamajhi.
Khatiwada was born in Taplejung on August 13, 1956. He did his Masters in economics in 1981 and Masters in public administration in 1984.
He started his career with Nepal Rastra Bank in 1983. He has also worked as economic adviser and member of the NPC. Khatiwada is also guest lecturer at Tribhuwan University, Purbanchal University and Kathmandu University.
He has worked for the improvement of sick industries, privatisation of public enterprises and fiscal reform committees. President for two terms of Nepal Management Association (MAN) Khatiwada has also worked in Mongolia, Bhutan, Afghanistan, Laos, Sri Lanka, Bangladesh and Vanuatu as a senior economist with UNDP.
Manandhar retires
KATHMANDU: Acting governor and deputy governor Krishna Bahadur Manandhar retires - after more than a three decade-long career with the central bank -- from Tuesday. He became acting governor after governor Vijaya Nath Bhattarai's retirement on January 31. Earlier also, he had been acting governor when the then governor Bhattarai had to face charges of corruption. There are two deputy governors at the central bank. After Manadhar;'s retirement, there will now be only one deputy governor -- Bir Bikram Rayamajhi.
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