Gold price drops by 900 per tola on Monday
The price of gold has dropped by 900 per tola in the domestic market on Monday.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 289, 400 per tola today. It was traded at Rs 290, 300 per tola on Sunday.
Similarly, the price of silver has dropped by Rs 20 per tola and is being traded at Rs 4, 585 per tola.
Expectations of the private sector from monetary policy
As Nepal Rastra Bank (NRB) prepares to unveil the monetary policy for the fiscal year 2026/27, attention has once again shifted to how the central bank will steer the economy at a time of prolonged slowdown.
Monetary policy plays a crucial role in the implementation of fiscal policy, i.e., the budget. The central bank's policy regulates liquidity, interest rates, and credit flow to ensure that targets set in the budget are met without destabilizing the financial sector.
The government unveiled the budget for the fiscal year 2026/27, which begins on July 17, on May 29. Since this will be the first monetary policy under the Rastriya Swatantra Party (RSP) government, which has unveiled an ambitious plan to transition Nepal to a $100 billion economy, it is being seen with great significance as the government’s vision relies on a more robust and facilitative regulatory approach from the central bank.
The upcoming monetary policy is particularly critical as the economy has remained sluggish for the past few years. Important sectors of the economy such as industry, trade, construction, tourism, and services have not fully regained momentum, and private sector confidence has weakened. Banks are awash with liquidity, but the private sector is hesitating to take credit despite record-low interest rates. Against this backdrop, business communities are calling for a more growth-oriented and private sector-friendly policy.
The Nepal Chamber of Commerce (NCC) has urged the central bank to draft the monetary policy in such a way that it promotes investment, production, and business expansion. In its suggestion to the central bank, the NCC also stressed the need to address existing challenges in the banking and financial sector while creating a more conducive environment for entrepreneurs. One of its key recommendations is to ensure credit growth of more than 20% to help achieve the government’s target of 7% economic growth. Similarly, it has called for maintaining a single-digit interest rate as a long-term policy, fixing the bank rate at 5%, and limiting the interest rate spread to 3.5% to make borrowing more affordable.
Meanwhile, the Confederation of Nepalese Industries (CNI) has urged the central bank to design the policy in line with current economic realities. CNI has proposed focusing the upcoming monetary policy on three key areas: boosting demand in the short term, reforming monetary policy practices, and initiating structural improvements within the central bank itself. It has suggested gradually reducing the cap on directed lending, implementing working capital guidelines on a sectoral basis, modernizing the interest rate determination system, and extending timelines related to collateral-based loan classification and blacklisting.
CNI has also called for special credit facilities for startups linked to government enterprise initiatives.
On the capital markets front, stock investors have sought policies for greater flexibility for banks and financial institutions to invest in the secondary market by revising caps, lock-in periods and other regulatory restrictions based on market conditions. In its suggestions to the central bank, the Nepal Sharemarket Investors Association (NSIA) has said institutions with strong capital, liquidity and risk management capacity should be allowed to participate more actively, which could enhance liquidity and contribute to price stability.
The NSIA has also demanded reform in dividend distribution policies for microfinance institutions. Instead of a uniform approach, they have called for a more flexible system based on financial health, capital adequacy, non-performing loans, profitability and governance standards.
Another key recommendation is to introduce a risk-based margin lending system for share-backed loans. Rather than a uniform framework, they say loan-to-value ratios should be determined based on a company’s financial strength, market capitalization, trading liquidity, and risk profile. This approach, investors say, will encourage investment in quality firms while reducing systemic risks. The association has also urged the central bank to simplify entry and exit mechanisms for non-resident Nepalis (NRNs) to encourage their investments in the secondary market.
The assocaition has also called for policy facilitation to mobilize funds from institutions like the Employees Provident Fund, Citizen Investment Trust, Social Security Fund, and insurance companies into the stock market.
Gold price drops by 400 per tola on Sunday
The price of gold has dropped by 400 per tola in the domestic market on Sunday.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 290, 300 per tola today. It was traded at Rs 290, 700 per tola on Friday.
Similarly, the price of silver has dropped by Rs 10 per tola and is being traded at Rs 4, 605 per tola.
Nepse plunges by 8. 30 points on Thursday
The Nepal Stock Exchange (NEPSE) plunged by 8. 30 points to close at 2, 653. 40 points on Thursday.
Similarly, the sensitive index dropped by 2. 65 points to close at 459. 89 points.
A total of 8,584,401-unit shares of 345 companies were traded for Rs 1. 53 billion.
Meanwhile, Sanigad Hydro Limited (SGHL) was the top gainer today with its price surging by 15. 00 percent.
Likewise, Upper Lohore Khola Hydropower Company Limited (ULHC) was the top loser as their price fell by 13. 65 percent.
At the end of the day, the total market capitalization stood at Rs 4. 55 trillion.
