Himal Press 
KATHMANDU: The World Bank, in coordination with the Ministry of Finance, organized a two-day learning event on ‘Managing Risks and Sustainable Finance’ in Kathmandu last week.
The event saw the participation of representatives from the Ministry of Finance, the Public Debt Management Office, the Financial Comptroller General Office, Nepal Rastra Bank, Nepal Bankers’ Association, Nepal Insurance Authority, Confederation of Nepalese Industries, and other financial sector professionals, according to a statement issued by the World Bank.
During the event, participants discussed derivatives instruments and international experiences with the use of financial instruments to address different market risks including interest rate, currency, liquidity, and commodity price risks.
Speaking on the occasion, Ram Pramod Yadav, an under secretary at the Ministry of Finance, said the ministry was interested in working with the World Bank on a detailed cost-benefit study to evaluate the potential advantages of adopting a hedging mechanism to manage financial risks. “There is a need to implement financial instruments in new projects on a pilot basis to help practitioners and policymakers understand the significance of structure approaches in mitigating risks from uncertain market conditions,” he added.
Likewise, Fabio Aparecido Da Silva, Senior Financial Officer at the World Bank, said the World Bank is committed to working with the Government of Nepal to strengthen the country’s risk management strategies and set up a hedging program to manage financial risks. He also emphasized the need to develop a regulatory framework and build capacity to ensure that hedging strategies serve as effective tools for managing risks.
On behalf of the Nepal Rastra Bank, Deputy Governor Bam Bahadur Mishra said hedging mechanisms can address market volatility on commercial terms which could help prevent undue fiscal pressures on the nation.
