KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The decision by Nepal Rastra Bank to forgo printing new banknotes for the Dashain and Tihar festivals reflects a strategic move aimed at fiscal prudence and addressing inflationary pressures.
By saving Rs 1.5 billion, the NRB is not only reducing the costs associated with currency production but also potentially stabilizing the money supply, which can help mitigate economic instability.
The significant drop in currency exchange indicates a shift in public behavior, possibly driven by increasing digital transactions or a greater awareness of economic conditions.
Meanwhile, the contract with the Chinese firm for new 10-rupee notes signifies a reliance on foreign expertise in currency production, which could have implications for national sovereignty and economic independence.
The recent fluctuations in gold and silver prices suggest a volatile market, likely influenced by both local economic factors and global trends, while the severe flooding in Madhes province underscores the urgent need for improved infrastructure and disaster preparedness in vulnerable regions, highlighting ongoing socio-economic challenges.
State saves Rs 1.5 billion by not issuing new banknotes
Nepal Rastra Bank (NRB) has saved Rs 1.5 billion by not printing fresh banknotes this year for the Dashain and Tihar festivals, leading to a significant decrease in currency exchange among the public.
Last year, the Central Bank issued Rs 14 billion worth of new currency notes in the Kathmandu Valley alone and Rs 29 billion nationwide for exchange.
This year, currency exchange is limited to approximately Rs 4 billion, a decline of nearly Rs 25 billion compared to the previous year.
Chinese company awarded contract to print Nepali currency
Nepal Rastra Bank (NRB) has entrusted the Chinese firm MS China Bank Note Printing and Minting Corporation with the responsibility of printing Nepalese banknotes.
The contract entails printing Rs 3.4 billion worth of 10-rupee notes.
The NRB previously issued a call for tenders from foreign note printing companies, and MS China secured the contract through a competitive selection process.
The total value of this contract is approximately 7.1 million US dollars.
Gold price down by Rs 1,000 per tola today
The price of gold in the Nepalese market has decreased on Wednesday.
Today, gold dropped by Rs 1,000 per tola, trading at Rs 159,100 per tola, according to the Nepal Gold and Silver Traders Federation.
On Tuesday, gold was priced at Rs 160,000 per tola.
Additionally, the price of silver also fell by Rs 40 per tola, with silver now trading at Rs 1,900 per tola, according to the Federation.
Floods cause damage worth more than 800 million in Madhes province
The recent flooding in Madhes province has caused damages worth more than Rs 804 million and 500 thousand.
Secretary at the Ministry of Energy, Irrigation and Water Supply of Madhes province government, Zakki Ahamad Ansari said that the largest damage is in Rautahat district due to the flooding caused by the swollen Bagmati, Lal Bakaiya, Jhajh, Lamaha and Gujara rivers in the district.
(Prepared by Srija Khanal)
Comment