Nepal Rastra Bank governor Prof. Dr. Biswo Nath Poudel has compared closing the share market to shutting down an ATM machine.
He explained that just like an ATM gives people quick access to their money, the stock market also works as a liquid asset. People can sell shares and receive money quickly. Many investors use the stock market not only for long-term investment but also to cover expenses during festivals or urgent needs.
In a podcast with Sushant Pradhan, governor Poudel said he does not support closing the stock market. According to him, the market should remain open all the time, and investors themselves should decide the value of shares. He noted that even if the market falls during difficult times, it usually recovers later.
Poudel also said interest rates and the overall condition of the economy guide the stock market. When interest rates increase, the market tends to go down. But when the economy slows and investment opportunities are limited, people turn to shares, and the market rises sharply.
He added that the stock market does not always reflect the real economy. For example, after the earthquake and during the COVID-19 pandemic, the economy was weak, but the stock market increased because there were fewer alternatives for investment and bank deposits offered very low returns.
According to him, what matters most for Nepal Rastra Bank is not whether the stock market goes up or down, but that it continues to function in a healthy and smooth way.
