Governor Dr. Vishwanath Paudel: "Stock Market Is a Key Instrument for Wealth Diversification"

Nepal Rastra Bank Governor Dr. Vishwanath Paudel has expressed a positive stance toward the stock market, emphasizing its role as a valuable tool for wealth diversification and future financial security.

Speaking at a public event, Governor Paudel stated, "I am positive about the stock market. When you have money, you might use a portion to buy land, another portion to buy gold, some for your bank savings, and some to invest in the stock market."

He elaborated on the inverse relationship between interest rates and the stock market, saying, "When interest rates rise, stock prices tend to fall. When interest rates decrease, stock prices generally go up. This pattern allows investors to make predictable and informed decisions about the future."

Drawing comparisons with tangible assets, he added, "Sometimes, the gold you buy today becomes a financial cushion during hard times. Similarly, land also serves as a reliable investment. Just like that, the stock market is another avenue through which people can secure their future."

Dr. Paudel also noted that just like land prices can sometimes shoot up overnight, stock prices can also experience rapid appreciation under certain conditions. However, he was quick to dismiss any negativity surrounding the capital market. "I see no reason for people to speak negatively about the stock market. I consider it a legitimate and effective instrument for wealth diversification," he concluded.

Governor Paudel’s remarks clearly signal a shift in perception from regulatory bodies towards treating the stock market not as a risky gamble, but as an organized investment domain. By acknowledging its role in a diversified financial portfolio, he encourages long-term thinking among investors.

According to market analysts, such statements from top-level officials help boost investor confidence and contribute to the institutional strengthening and long-term stability of Nepal’s capital market.