Kathmandu: Taking a rare step, the Nepal government has suspended the country. Central bank Governor Maha Prasad Adhikari On disagreement with Finance Minister Janardhan Sharma And for not doing enough to pull the economy out of recession.
The Governor of Nepal Rastra Bank (NRB) was suspended on Friday after the government constituted a panel headed by the former. Supreme court judge Purushottam BhandariKathmandu Post newspaper reported.
The officer was appointed as the 17th Governor of Nepal on April 6, 2020 under the previous regime led by former Prime Minister KP Sharma Oli.
This is only the second instance when a sitting governor enjoying a five-year term has been suspended.
According to sources, differences had come to the fore between the two. Officer and Sharma in view of the depleting foreign exchange reserves and the current state of the economy of Nepal.
Last week, the NRB announced a ban on imports of vehicles and other luxury items, citing liquidity crunch and depleting foreign exchange reserves.
Since July 2021, Nepal has seen a decline in foreign exchange reserves due to rising imports, declining remittance flows and lower earnings from tourism and exports.
As of February 2022, the Himalayan country’s gross foreign exchange reserves had declined by 17 per cent to USD 9.75 billion from USD 11.75 billion in mid-July 2021, according to central bank data.
Foreign exchange reserves are now only enough to sustain imports of goods and services for 6.7 months, which is short of the central bank’s target of at least seven months.
The official’s performance was at the top of the agenda of the cabinet meeting last week.
Maoist center president in that meeting flower lotus dahlia and CPN (Unified Socialist) President Madhav Kumar Nepal, which is a key coalition partner, expressed “serious concern over the state of the economy” and asked the Prime Minister Sher Bahadur Deuba to take concrete steps,” according to the Kathmandu Post newspaper.
Deputy NRB Governor Neelam Dhungana Timilsina After the suspension of the officer, the responsibility has been entrusted as the Acting Governor.
The Governor of Nepal Rastra Bank (NRB) was suspended on Friday after the government constituted a panel headed by the former. Supreme court judge Purushottam BhandariKathmandu Post newspaper reported.
The officer was appointed as the 17th Governor of Nepal on April 6, 2020 under the previous regime led by former Prime Minister KP Sharma Oli.
This is only the second instance when a sitting governor enjoying a five-year term has been suspended.
According to sources, differences had come to the fore between the two. Officer and Sharma in view of the depleting foreign exchange reserves and the current state of the economy of Nepal.
Last week, the NRB announced a ban on imports of vehicles and other luxury items, citing liquidity crunch and depleting foreign exchange reserves.
Since July 2021, Nepal has seen a decline in foreign exchange reserves due to rising imports, declining remittance flows and lower earnings from tourism and exports.
As of February 2022, the Himalayan country’s gross foreign exchange reserves had declined by 17 per cent to USD 9.75 billion from USD 11.75 billion in mid-July 2021, according to central bank data.
Foreign exchange reserves are now only enough to sustain imports of goods and services for 6.7 months, which is short of the central bank’s target of at least seven months.
The official’s performance was at the top of the agenda of the cabinet meeting last week.
Maoist center president in that meeting flower lotus dahlia and CPN (Unified Socialist) President Madhav Kumar Nepal, which is a key coalition partner, expressed “serious concern over the state of the economy” and asked the Prime Minister Sher Bahadur Deuba to take concrete steps,” according to the Kathmandu Post newspaper.
Deputy NRB Governor Neelam Dhungana Timilsina After the suspension of the officer, the responsibility has been entrusted as the Acting Governor.