Wagle: Government Won’t Interfere in Nepal Rastra Bank’s Autonomy

Finance Minister Dr. Swarnim Wagle has stated that the government has no intention of undermining the autonomy of Nepal Rastra Bank (NRB) or interfering in the authority of its governor. Responding to questions raised by lawmakers during clause-by-clause discussions on the bill to amend the Nepal Rastra Bank Act, 2058 at the Finance Committee on Friday, Wagle said the government would not exert unnecessary pressure on the central bank while it formulates monetary policy, issues circulars, or makes regulatory decisions. Wagle also dismissed concerns that the government could use the Finance Secretary to pressure NRB. He described the governor as a powerful and independent position and said the Finance Secretary’s role should primarily be to coordinate fiscal and monetary policies, acting as a bridge between the government and the central bank. According to Wagle, monetary policy is expected to support the broader objectives of the government’s budget, which he described as an established practice of coordinating fiscal and monetary policies. However, he acknowledged that a situation in which monetary policy completely contradicts the government’s core policy could require some form of intervention. Lawmakers, meanwhile, raised concerns that the proposed amendments to the NRB Act could weaken the central bank’s independence. Parshuram Tamang of the Nepali Communist Party argued that NRB should not be reduced to a department of the Finance Ministry and suggested that its reports should be submitted directly to Parliament. He also called for a high-level mechanism to review monetary policy to be incorporated into the law. Similarly, Prof. Dr. Pushpa Raj Kadel of the CPN-UML cautioned against gradually restricting NRB’s powers in the name of coordination. He also questioned the proposed three-year term for the governor, arguing that such a provision could make the governor more dependent on the government. The Finance Committee has now completed its clause-by-clause discussion on the amendment bill and instructed its secretariat to prepare the committee’s report.