KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The appointment process for the Chairman of the Nepal Securities Board has been canceled. Additionally, the prices of gold and silver increased in the Nepali market on Friday.
Similarly, this week, there was limited activity on the Nepal Stock Exchange (NEPSE). Meanwhile, in Devghat Rural Municipality, 142 projects were completed in the past year.
Furthermore, landslides have blocked roads in various parts of the Karnali Corridor. As a result, four airports in Gandaki Province, which were built at considerable expense, have become non-functional.
Appointment process of Chairman of Securities Board cancelled
The process of appointing the Chairman of Nepal Securities Board has been cancelled. The recommendation committee, tasked with proposing names for the chairman’s appointment, cancelled the process due to discrepancies in share holdings.
The committee issued a notice on Friday stating the entire appointment process for the Chairman of the Nepal Securities Board has been revoked.
“Following the decision of the recommendation committee formed to propose names for the Chairman of the Nepal Securities Board on the date 2081-3-14, a notice was published on 2080/11/16 inviting nominations for the chairman position,” the Committee’s notice explained.
Gold prices surge in Nepalese market
The domestic gold market on Friday experienced a significant uptick, with prices rising by Rs 1,000 per tola. According to the Nepal Gold and Silver Dealers’ Association, fine gold commanded Rs 141,800 per tola, while standard gold was priced at Rs 141,100 per tola, marking a notable adjustment.
In contrast, silver prices remained steady at Rs 1,790 per tola. Notably, one tola equaled approximately 11.66 grams. This price movement reflected increased demand or speculative activity in the gold market, often sought during economic uncertainty or inflationary periods as a safe-haven asset.
The stability in silver prices amidst fluctuating gold prices underscored differing market dynamics for these precious metals. The association’s role in price reporting ensured market transparency and regulation within Nepal’s precious metals sector, aiding informed decision-making among stakeholders.
Yesterday’s market fluctuations highlighted broader economic trends and consumer behavior influenced by global economic conditions, shaping investor sentiment and market activity in the precious metals segment.
NRB allows BFIs to issue perpetual preference shares for capital boost
Nepal Rastra Bank (NRB) has amended its directive to allow Banks and Financial Institutions (BFIs) to issue perpetual non-cumulative preference shares for additional capital.
BFIs must meet 12 conditions to utilize this opportunity. Institutional buyers exclusively purchase these shares, with fixed payment periods predetermined by the issuing BFIs.
Dividends are solely disbursed from the current year’s profits, excluding reserve profits or other funds. Commercial banks are required to maintain 8.5 percent of their primary capital for such issuances.
This new provision aims to assist banks in bolstering their capital bases amid challenges in meeting NRB’s capital adequacy requirements.
Nepal authorizes QR code payments in India and Bhutan
Nepal’s central bank has recently authorized its citizens to utilize QR code payments in India, marking a reciprocal move following India’s earlier allowance of mobile payments by Indians in Nepal.
The initiative aims to facilitate cross-border transactions for goods and services, with daily limits set for merchant payments. This step underscores Nepal’s efforts to enhance digital payment systems, promoting convenience and economic integration within the region.
Bharatpur moves forward with Gautam Buddha International Cricket Stadium construction
Construction of the Gautam Buddha International Cricket Stadium in Bharatpur, Chitwan, which had stalled for three years, is set to resume. The project, originally initiated by the Dhurmus Suntali Foundation, was transferred to Bharatpur Metropolitan City.
Now, with funding from Bagmati Province Government and Bharatpur Metropolitan City, the city has awarded a construction contract worth Rs 682.64 million to Himalayan-Kalinchok-BBI JV.
The first phase aims to build infrastructure for 10,000 spectators, with completion expected in two and a half years, marking a significant step in boosting local sports facilities and advancing cricket in Nepal.
(Compiled and prepared by Srija Khanal)
Economic Digest is a daily morning economic digest, basically relatable summations of the most important business news, and happenings from Nepal into easy-to-understand summaries.
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