'NRB is responsible for current economic woes'

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'NRB is responsible for current economic woes'

Postby shiva on Tue Jun 08, 2010 6:19 am

Experts have attributed the onset of economic anomalies in the country to incoherence between economic and monetary policy.

While speaking at an interaction program held in the capital on Sunday, they also urged the central bank to come up with a package to address the prevalent economic woes while drafting a monetary policy for the upcoming fiscal year.

Prithvi Raj Legal, past vice-president, National Planning Commission (NPC) accused the Nepal Rastra Bank (NRB) of being unable to devise appropriate strategy to boost the dwindling exports of the country to reduce the country's trade deficit.

He also claimed that that the central bank had totally failed to duly assess the exchange rate between US dollar and Indian currency.

Deependra Bahadur Chhetri, ex-governor NRB, said that the tendency on the part of central bank just to supervise the bank and financial institutions (BFIs) has triggered a severe problem in the economic state of the country.

"As the NRB only relies on the reports of commercial banks, it could not keep tabs on import of gold worth Rs 37 billion, which gave a serious blow to the economy," he charged.

Speaking on the same occasion, other experts also alleged that due to the myopic vision of the central bank, the commercial banks are losing the credibility of the general public.
shiva
 
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