Wednesday, June 28, 2017

BoK to support NRB in developing macroeconomic model

Kathmandu, June 27: The Nepal Rastra Bank (NRB) and Bank of Korea (BoK) Tuesday signed an agreement to develop macroeconomic model for economic forecasting.
As per the agreement, the BoK, in collaboration with the Yonsei University of Korea and the central bank of Nepal, will develop new macroeconomic forecasting model so that the institutions like the NRB, National Planning Commission (NPC) and Ministry of Finance could analyze the economic situation and predict the future outcomes more accurately, said Nara Bahadur Thapa, executive director at the NRB.
According to him, the practice of model building, forecasting and policy simulation in Nepal are at rudimentary stage although the NRB is constantly upgrading the macro models by capturing new information available in the economy.
The Korean central bank is extending its support under NRB-BoK collaboration on Knowledge Partnership Programme.
To develop the model, a Korean team will make a couple of trips to Nepal, and hold discussions with the concerned stakeholders.
“By February 2018, the model development work will be completed,” said Thapa.
He also said that the Korean central bank had been supporting Nepal in payment and settlement, and has pledged to support in monitoring and regulation and economic research framework.
“The Areas of cooperation between the two banks would include capacity strengthening on model building and forecasting, currency management, payment and settlement, and banking sector regulation and supervision,” said Thapa.
He expressed hope that the collaboration with the BoK would be highly useful to the NRB for enhancing efficiency of the staff involved in model building and forecasting.

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