Economist Biswo Nath Poudel has been appointed as the new governor of Nepal Rastra Bank (NRB), the central bank of Nepal, ending a prolonged discord within the ruling coalition of Nepal. 

The 49-year-old Poudel, a former economic adviser at the International Labour Organization (ILO), replaces Maha Prasad Adhikari, who completed his five-year term on April 7. 

The position of the central bank chief had been vacant for over 40 days due to disagreements among allies of Prime Minister K.P. Sharma Oli's ruling coalition regarding the candidate selection process. Poudel's appointment is seen as a resolution to the impasse, as he is considered to have close ties to the centrist Nepali Congress party, a key member of the ruling coalition. 

Reuters reports that Poudel's immediate challenges include addressing the health of the banking sector, which analysts note has been significantly impacted, requiring swift correction to improve the quality of banking assets. There are also concerns regarding the misuse of loans by borrowers, prompting a need for enhanced supervision of commercial banks. Additionally, Poudel faces the task of steering Nepal out of the "grey list" of the Financial Action Task Force (FATF), a global anti-money laundering watchdog. This challenge emphasizes the importance of implementing measures to combat money laundering effectively under his leadership.

Poudel received his PhD in Agricultural and Resource Economics from the University of California, Berkeley, has held several government posts in Nepal, and is a professor at Kathmandu University.

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_{^{Photo Credit: Nepal Rastra Bank}}