Timely policy measures ensured economic stability: Governor Adhikari

KATHMANDU: Maha Prasad Adhikari completed his five-year tenure as Governor of Nepal Rastra Bank (NRB) on Friday.

In his farewell remarks, Adhikari highlighted both achievements and challenges during his term, including significant political interference in the central bank’s autonomy.

“Despite the economic challenges posed by the COVID-19 pandemic and the high inflation resulting from the Russia-Ukraine tensions, the country’s overall economic stability has been maintained. This has been possible due to the vigilant and timely policy measures implemented by the central bank,” he added. “The external sector remains robust, with the financial sector demonstrating strong capital adequacy and liquidity levels that exceed regulatory requirements. Interest rates have remained business-friendly, and the post-COVID inflationary pressures have gradually eased.”

Adhikari added that the central bank, under his leadership, modernized monetary policy and strengthened liquidity management. “NRB established dedicated departments for anti-money laundering supervision and financial consumer protection, while also introducing measures to stabilize interest rates through instruments like the Standing Deposit Facility,” Adhikari said. He also highlighted the progress in digital payment systems and the effective policy responses to COVID-19’s economic impact.

The outgoing governor revealed that NRB’s autonomy faced direct challenges during his tenure, particularly in his second year. He was referring to then Finance Minister Janardan Sharma’s decision to suspend him.