KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
NEPSE Index experiences minor decline
The NEPSE Index experienced a minor decline of 0.09%, closing 1.93 points lower at 2,077.78 on Thursday.
This drop follows a previous session’s decrease of 5.58 points, indicating a trend of modest losses. Throughout the trading session, the index showed notable fluctuations, reaching an intraday high of 2,089.10 and a low of 2,073.47, before stabilizing at the closing level. This suggests a volatile trading environment with active investor participation.
The market saw substantial trading activity, with 8.8 million shares exchanged across nearly 60,000 transactions. This high volume of trades reflects a healthy level of market engagement, even in the face of a slight decline.
The dip in the index, combined with sector-specific challenges, highlights a mixed sentiment among investors, balancing caution with active participation.
Finance Ministry unveils five-year plan to combat money laundering
The Ministry of Finance launched a five-year strategy to combat money laundering to avoid potential greylisting by the Financial Action Task Force (FATF).
Spearheaded by Finance Minister Barshaman Pun, the strategy, titled ‘National Strategy and Work Plan on Prevention of Financial Investment in Money Laundering and Terrorist Activities,’ will begin next fiscal year, pending Cabinet approval.
This initiative responds to a recent Mutual Evaluation Report by the Asia Pacific Group on Money Laundering, which highlighted significant legal deficiencies and warned of the risk of greylisting if not addressed.
Nepal’s gold prices hit record highs
Nepal’s gold and silver market reached unprecedented highs on June 6, 2024, marking a historic milestone. The Federation of Nepal Gold and Silver Traders’ Association reported that fine gold prices surged by Rs. 1,800 to an all-time high of Rs. 1,44,000 per tola, up from Rs. 1,42,200.
Tejabi gold similarly rose by Rs. 1,800, reaching Rs. 1,43,300 per tola on Thursday, compared to the previous day’s Rs. 1,41,500. This surge followed a previous record on June 4, 2024, when fine gold hit Rs. 1,42,700 per tola.
The international gold rate is currently at $2,368.30 per ounce, with silver at $30.39 per ounce. These international rates significantly influence Nepal’s precious metals market.
The recent price surges reflect broader domestic and global economic shifts, impacting traders and consumers. The soaring prices highlight the dynamic nature of the market and its sensitivity to international economic trends.
NTA revokes Chaudhury’s CG Telecom license
The Nepal Telecommunication Authority (NTA) has taken steps against CG Communications Limited, owned by Binod Chaudhary, by canceling its license.
This action comes after STS Telecom Sanchar Pvt. Ltd.’s license was revoked due to failure to renew within the specified timeframe. CG had applied for license renewal but failed to submit the application and fee on time, resulting in automatic cancellation as per Telecommunications Regulations.
The notification of license cancellation has been issued to CG Communications Limited in Sanepa via a public notice. Despite intentions to continue services post-license expiry, Chaudhary’s company did not meet regulatory requirements.
HoR greenlights proposal for consideration of Appropriation Bill, 2081
The House of Representatives approved the proposal seeking consideration of the ‘Appropriation Bill, 2081’, with a majority endorsement.
Finance Minister Barshaman Pun presented the proposal for consideration on the Bill during the meeting. Responding to queries from lawmakers earlier, Minister Pun clarified that the Bill needed parliamentary approval to utilize the Federal Reserve Fund for various services and projects, allocating funds for the upcoming fiscal year accordingly.
Foreign currency exchange rates
The exchange rates for the US dollar, euro, British pound, and Qatari riyal have increased on Friday, indicating a strengthening of these currencies against the Nepalese rupee.
Specifically, the buying rate for the US dollar is 133 rupees 26 paisa with a selling rate of 133 rupees 86 paisa, and for the euro, it is 144 rupees 83 paisa for buying and 145 rupees 48 paisa for selling.
The British pound’s rates are 170 rupees 21 paisa for buying and 170 rupees 98 paisa for selling, while the Qatari riyal is at 36 rupees 55 paisa for buying and 36 rupees 71 paisa for selling. The spreads, representing transaction costs, are 60 paisa for the US dollar, 65 paisa for the euro, 77 paisa for the British pound, and 16 paisa for the Qatari riyal, the lowest among the listed currencies.
This upward trend suggests a depreciation of the Nepalese rupee or an appreciation of the foreign currencies due to various economic factors. For travelers and businesses, the higher rates imply increased costs for exchanging US dollars, euros, and British pounds, with the least impact on exchanges involving the Qatari riyal.
(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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