Friday, November 8th, 2024

Economic Digest: Nepal’s Business News in a Snap


08 November 2024  

Time taken to read : 7 Minute


  • A
  • A
  • A

KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.

The decline in gold and silver prices in Nepal on Thursday mirrors a larger global market downturn, primarily driven by the strengthening of the US dollar following Donald Trump’s election.

On Thursday, gold prices dropped by Rs 4,000 per tola, while silver prices decreased by Rs 55 per tola, aligning with a 3.2 percent drop in global gold prices.

This trend is attributed to rising inflation concerns, which typically strengthen the dollar and exert downward pressure on precious metal prices, as they are often considered safe-haven investments.

The uncertainty surrounding potential changes in US Federal Reserve interest rate policies has further dampened market sentiment, reducing demand for gold, traditionally viewed as a hedge against inflation.

Alongside this, Nepal’s plans to export 40 megawatts of electricity to Bangladesh indicate an important shift in regional energy dynamics, with the Chilime-Trishuli 220 KV transmission line now operational.

In infrastructure news, the completion of the Gwarko Flyover in Lalitpur has been postponed by three months due to weather conditions and contractor delays, while construction of the 100 MW Super Trishuli hydropower project is underway, set to become Nepal’s largest privately funded hydropower initiative.

Meanwhile, the value of Bitcoin surged past 10 million Nepali rupees following Trump’s election, demonstrating the cryptocurrency’s volatility and potential as an investment.

Additionally, local agriculture remains resilient, with farmers like Tulsiram Bhandari achieving significant earnings from flower sales during the festive season, highlighting the continued importance of agriculture in Nepal’s economy.

Overall, these developments underscore the interconnectedness of global market trends, domestic economic activities, and the challenges faced by various sectors in Nepal.

Gold, silver prices drop in Nepal amid global market slump

The drop in gold and silver prices in Nepal on Thursday reflects broader trends in the global market, where both metals have seen significant declines.

Gold prices (Thursday) fell by Rs 4,000 per tola, while silver prices dropped by Rs 55 per tola, mirroring a sharp 3.2 percent fall in global gold prices.

The decline is linked to the strengthening of the US dollar, particularly following Donald Trump’s election, which has heightened inflation concerns.

As the dollar strengthens, it puts downward pressure on gold and silver prices, as they typically move inversely to the dollar’s value.

Additionally, expectations of potential inflationary pressures and changes in US Federal Reserve interest rate policies are also influencing market sentiment.

The combination of a stronger dollar and uncertainty around future interest rate cuts has led to decreased demand for gold, traditionally seen as a hedge against inflation, further contributing to the price drops observed in Nepal and worldwide.

Nepal set to export 40 MW of electricity to Bangladesh

Nepal is set to sell 40 megawatts of electricity to Bangladesh within a week, marking a significant step as Bangladesh becomes the third country to receive electricity from Nepal, following India. The Chilime-Trishuli 220 KV transmission line has been activated, enabling this export.

According to the Nepal Electricity Authority, preparations are underway to commence the export of 40 megawatts of electricity.

Chandan Kumar Ghosh, spokesperson for the authority, said that while the export was initially scheduled to begin on Thursday, it has been delayed for a few days due to pending approval from India.

He stated, “If there is no approval from India, the export will be postponed for a few days. However, we expect to start exporting electricity to Bangladesh next week.”

Chilime-Trishuli 220 KV transmission line activated

The Chilime-Trishuli 220 KV transmission line has become operational. This 28-kilometer line runs from the Chilime Hub Substation in Thambuchet, Amachodingmo Rural Municipality of Rasuwa, to the Trishuli 3B Hub Substation in Pahrebensi, Kispang Rural Municipality of Nuwakot.

NEPSE remained closed on Thursday

KATHMANDU: The Nepal Stock Exchange Limited (NEPSE) remained closed on Thursday, with trading set to resume on Sunday at 11:00 AM.

The government announced a public holiday from Thursday to Saturday on the occasion of Chhath festival.

Final stages of Gwarko Flyover construction set back by weather

The completion of the Gwarko Flyover in Lalitpur will be delayed by an additional three months.

Although much of the construction work is nearing completion, the flyover is still not ready for traffic operation.

Construction, which had previously been halted due to rain, has now resumed. However, delays caused by the contractor have led to the project falling behind the original schedule.

Prabhat Kumar Jha, Director of the Quality, Research, and Development Center under the Road Department, informed Khabarhub that the current focus is on the slab slopes leading up to the main bridge.

Construction begins on 100MW super Trishuli hydropower dam

Construction has started on the 24.5-meter-high dam for the 100MW Super Trishuli Hydropower Project, located on the Trishuli River.

This project is set to become the largest privately-funded hydropower initiative in Nepal and will be the country’s first run-of-river plant that doesn’t require a tunnel.

The powerhouse, located at the base of the dam in the Trishuli basin, will house three turbines: two with capacities of 33.33 MW each and one with a 33.4 MW capacity.

The developer, Blue Energy, has already begun diverting water to facilitate dam construction at the project site, situated between Butar in Gandaki Municipality (Gorkha) and Chumlingtar in Ichhakamana Municipality (Chitwan).

Bitcoin surges following Trump’s election

The value of the cryptocurrency Bitcoin has surpassed 10 million Nepali rupees following Donald Trump’s election as President of the United States.

On Sunday, the price of Bitcoin was approximately NPR 9.21 million, but it rose to over NPR 10.76 million by Thursday.

Following Trump’s victory, the prices of many major cryptocurrencies surged. For instance, the price of Ether increased from NPR 329,000 on Tuesday to NPR 379,000 today. Similarly, the price of Solana rose from USD 172 to USD 187, while BNB climbed to USD 595.

Earnings from flower sales

In a local agricultural success story, Tulsiram Bhandari, a farmer from Chapakot Municipality-1 Beldanda in Syangja, earned NPR 500,000 from the sale of hundreds of flower petals during the Dasain and Tihar festivals.

He reported selling 1,845 garlands and 1,376 kilograms of flowers, yielding a total income of NPR 491,600 from flowers and NPR 147,600 from garland sales.

(Prepared by Srija Khanal)

Publish Date : 08 November 2024 08:54 AM

Unified Socialist asks province committees to recommend candidates for by-election

KATHMANDU: The Unified Socialist has asked its concerned province committees

Gold price up by Rs 2,000 per tola today

KATHMANDU: The prices of gold and silver saw an increase

Ruling CPN-UML holding Secretariat meeting tomorrow

KATHMANDU: The ruling CPN-UML is holding a meeting of its

Trump names campaign manager as his chief of staff

WASHINGTON DC: US President-elect Donald Trump has named Susie Wiles,

Westerly and local winds impacting today’s weather

KATHMANDU: The country is currently under the influence of westerly