Political motives should not prevail over central bank; Finance Minister Dr. Wagle

Kathmandu / July 17: Finance Minister Dr Swarnim Wagle said that no political interference should prevail over the central bank in a way to transfer or dismiss the governor from one office to another like a regular government employee.

At a primary discussion on the bill to amend the Nepal Rastra Bank Act, 2058, organized today by the Public Accounts Committee at Singha Durbar today, Finance Minister Dr. Wagle said that political interference in the central bank would have dire consequences.

“The Nepal Rastra Bank Act, 2058 incorporated several appreciated aspects. The act also specified arrangements to make the governor’s appointment permanent,” he said, adding, “The governor should not be dismissed or transferred from one office to another like in bureaucracy. The central bank is supposed to be an autonomous and independent institution. Political involvement can be detrimental in such institution.”

Finance Minister Dr. Wagle also highlighted the need to make the central bank act relevant while lauding the debate to strengthen the voice in support of its autonomy.

“We are also trying to modernize the structure and board of the central bank,” he said, sharing ongoing efforts to streamline the appointments, duties, and responsibilities of the governor and directors.”

Dr. Wagle mentioned that the bill also includes provisions to ensure that actions taken with good intentions are not penalized. RSS