Kathmandu. Nepal Rastra Bank (NRB) Governor Prof. Dr. Bishwanath Poudel has said that closing the share market is like shutting down a bank’s ATM machine.

He said that the importance of the ATM machine is equally important to the stock market. Talking to Sushant Pradhan on the podcast, he said that the stock market should not be closed.

“Some people invest some of their wealth in the stock market, some money in other areas. Some people are also celebrating festivals,” he said, “Closing the market is like shutting down an ATM. This stock market is a liquid asset. When the shares are sold, the money comes quickly. ’

He said he was not in favour of closing the stock market in general. “The stock market should be allowed to function forever. Investors themselves manage and fix the price,” he said, “There is a tradition of closing the market at different times in Nepal.” When there is some problem, the market is ‘shocked’ in the first few days but then ‘rebounds’. Governor Poudel said that the bank interest rate and the economic situation of the country will guide the market.

He said that when interest rates rise, the market will fall, when the economy slows down, then the market will start rising. “When the economy is sluggish, if people invest thinking that there is not much place to invest in shares, then the market will rise sharply,” he said, “Similarly, when the economy is weak, the market will rise.” In some cases, even when the economy is good, the market is likely to fall. All this is due to interest rates. ’

He argues that in a different context, it depends on how the stock market can be interpreted rather than calling it a mirror of the economy. “The stock market rose when the economy was not moving, after the earthquake, during the Corona period. There is no place to invest elsewhere. If you keep it in the bank, you will not get interest. That’s why there is a trend of investing in the market,” he said. But the market doesn’t depend on what happens next, he said.

Governor Poudel said that the stock market should be operating in a healthy manner rather than rising or falling in the eyes of the Nepal Rastra Bank.