Nepal Appoints Biswo Nath Poudel as New Central Bank Governor Amidst Coalition Tensions

Economist Biswo Nath Poudel has been named the new governor of Nepal's central bank, resolving a longstanding disagreement within the ruling coalition. The announcement was made by Prithvi Subba Gurung, Nepal's minister of communications and information technology.

Poudel, previously an economic adviser at the International Labour Organization, succeeds Maha Prasad Adhikari, who retired after a five-year term. His appointment concludes over a month of vacancy as the coalition struggled to agree on a candidate.

Poudel, aligned with the Nepali Congress party, faces immediate challenges in enhancing the banking sector and removing Nepal from the FATF 'grey list'. Analysts highlight the urgent need to address deteriorated banking assets and enforce stricter supervision.

(With inputs from agencies.)