Kathmandu,16 Feb 2015: In view of the economic challenges and implementation status of the past six months’ monetary policy of the current fiscal year, Nepal Rastra Bank is to make effective the future course.
At a press conference organized to make public the half-yearly review of the monitory policy on Monday, the NRB said although it was difficult to achieve the economic growth rate as per the expectation, there was no condition to bring a big change in the policy.
At the news conference, NRB Governor Dr Yuvraj Khatiwada said there were however growing challenges caused by slowdown in the contribution of agricultural sector. Although the growth rate was projected to be six percent, it could not rise above five percent, he added.
Other indexes were satisfactory, he said, adding that the monetary policy implemented to make the monetary services accessible, transparent and qualitative would be monitored effectively.
He expressed belief that the trade loss could be reduced by stabilizing the petroleum prices in the country in line with the international market.
During the review period, the export was reduced by 3.9 percent while the import upped by 13.3 percent.
In the same period of the last fiscal year, the remittance inflow was increased by 34.4 percent which however is limited to 3.9 this year. The monetary policy had projected the remittance influx equal to the last year.
According to Governor Dr Khatiwada, the decrease in exchange rate and the trend of sending money with long time interval could be the reasons behind the decline in remittance. Anyway, the projection on remittance could be met, he argued.
Similarly, the foreign exchange reserve has upped by 5.9 percent thereby reaching Rs 704 billion. It can manage the income of goods for 11.4 months and manage the goods and service for 9.8 months.
The loan at private sector was increased by 11.5 percent in the review period. Compared to the resource mobilization, the government expenditure was low. The saving in this period was Rs 72.16 billion and the accumulated deposit with that of the last year reached Rs 95.66 billion.
On the occasion, Chairman of the Bankers’ Association, Upendra Poudel, suggested that the remittance from abroad could be brought through the banking system.