KATHMANDU, Jan 17: After more than 18-month hiatus, Nepal got it´s central bank governor on January 15. Deependra Bahadur Kshetry was appointed the 14th governor of Nepal Rastra Bank, the central bank, making him the first one after the country became a republic.Kshetry, who has served at the central bank for almost 30 years, retired from the post of executive director in April 2007. An independent, he is said to be friends with Finance Minister Dr Baburam Bhattarai and was a political appointee by the Maoist party in the National Planning Commission during the interim government.
The 59-year old took over the post of governor after it fell vacant following the removal of suspended governor Bijaya Nath Bhattarai who has been facing corruption charges.
We asked people in Kathmandu what their wish list for the new governor was. Here are some of them: [break]
Dilli Ram Subedi, student
The new governor should take initiatives to control the excessive price hike. The hike is not normal and affects the general people who work hard to earn a living. So, the governor should think about taking it under control.
The governor should also focus on how the global economic crisis could affect Nepal and take necessary measures so that six months later, we do not have a complete financial meltdown. He should also focus more on long-term policies and how the country can see more stable economy. Currently, the country´s economy is volatile and highly unstable.
Hari Devi Shrestha, housewife
The market price is skyrocketing by the day. It´s very hard for middle class families like ours to maintain our living standards. The prices of essentials like fuel, food, etc should not increase they should be made easily available. During the last few months, we saw the worst. There was a fuel crisis. The vegetables and fruits were unaffordable. So were poultry items. It´s very hard to eat healthy. I think the new governer should take these things into consideration so that people can earn a decent living.
Uttam Roka, migrant worker
I have been working abroad for two years. I am going back again. I wish the new governer would have plans for us in Nepal so that thousands of Nepali sons do not have to risk their lives and go abroad to earn a living. I don´t know what kinds of plans he can bring forth, but it would be nice if he could formulate plans and policies to generate more employment in the country, control rising price hike and make the economy more suitable for all classes of people.
Also, at this point, many of us are sending remittances home. I read in paper that our money is not secure. I have small savings for my children´s future. If that savings are somehow gone, or become of less value, what worth is it that I go abroad, put my life in jeopardy, stay away from my family. I hope the central bank will be able to make sure our money remains safe and does not lose value.
Sahili Maharjan, street vendor
I don´t really know what a central bank governer is supposed to do. But I assume one of them is to control price hike. I wish he would be able to make it easier for us to earn a living. We earn our daily bread by selling vegetables and fruits. If the price goes up, the little margin that we keep for ourselves as profit, will go down. The sales goes down. We on the streets are most vulnerable to go hungry if the price hike is not controlled. Commidity prices are very unstable so the governer should try to make it stable.
Ahimsha Yonjan, advertising and design
Whoever is the new governor, I don´t want him to do anything else than his job. I want him to be the governor of the central bank and that is all. And this goes for the rest of the clowns in power as well. Most of the people in Nepal go way beyond their job description and create mess around them. If every one just does their job, we would not see so much problem that we see now.
Hreetu Nemkul, businesswoman
The Maoists have appointed their man probably because it will be easier for them to bring about economic policies and philosophies catering to their ideology. Maybe now they will find it helpful to carry out their plans.
I just wish the socio-economic reform that they are talking about to materalize. I hope the new governor will be able to cap price rise. I hope the inflation will be checked and wilful defaulters punished.
Sophiya Tamot, development worker
The new governor should be honest and try to do his job well. He should work as per the terms of reference rather than interfering elsewhere and he will be respected for this.
Pradeep Humagain, lecturer
People need economic stability. So, the governor should work on it. He should not be biased and rise above partisan interest. Instead, he should focus on bringing economic prosperity to the people´s lives.
As I know, he comes from agricultural background, maybe he can and would be the appropriate person to make proper use of his knowledge and skill for the betterment of the economic sector.
His work should be people-oriented and not government-oriented.
Khim Kunwar, civil servant
The prevalent high inflation is hitting us hard. According to studies by the central bank, the current inflation stands at 14 per cent. The government has claimed that it will try to bring it down to seven per cent. Even India has six per cent inflation. The main challenge and responsibility of the new governor should be to keep inflation at the minimum.
Or else, we will see maximum price hike. The purchasing capacity of the people will be low and we will see a massive economic downfall. The earning capacity has not grown in most of the families. If we cannot control inflation, these families will suffer. It is the responsibility of the central bank to control and regulate the money circulation and check inflation.
Our budget is expense-oriented. When we have too much expenses, we have the danger of suffering from high inflation.
Bijaya Ghimire, reporter
The new governor should immediately take measures to complete the Financial Sector Reform project, which has been suspended for a year now. The government initiated this project six years ago with Nepal Bank Limited and Rastriya Banijya Bank which is worth Rs 7 billion and was supposed to be completed last year. I also wish he would come clean with those who delayed the project and if need be, take necessary actions against them. Also, we desperately need an inflation-monitoring committee. The rampant inflation needs an immediate check.
Personally, I want Nepal´s government to ensure positive interest rate for the deposited money. Currently, most of the banks offer 2 per cent interest on deposits, while the inflation rate is 14 per cent, which means the consumers are suffering 12% interest rate deficit. I wish he would sort this out.
Sudhir Khatri, banker
He must immediately stop issuing licenses to new commercial banks. We already have enough of them. If we do not address this, thanks to global recession and domestic inflation, I can foresee a big banking crisis in Nepal. With what we have now, it´s also promoting unhealthy competition.
Secondly, I also expect some serious reforms in the monetary policy. To speak of which, I wish the government would decrease the Cash Reserve Ratio (CRR), which is at 6 per cent now. Given the recent recession, this ratio is very difficult to maintain.
We recently proposed to the central bank to cut down our working days. With the record load-shedding, banks cannot cater to the customers seven days a week. So, it´s better if we try and look for alternative options like e-banking. I hope the new governor will take initiative towards announcing holidays on Saturdays and Sundays.
He has short tenure of just thirteen months. I just hope he will listen to the problems of bankers and take initiative to reform the sector and address the genuine problems.
Radhesh Pant, banker
I hope he will take necessary measures to tame inflation. If we do not take initiative now, it will be very difficult to cope inflation, the global impact of international recession and remittances altogether.
I also hope that he will bring special policies for rural development and maintain the leading position of the central bank.