Finance Minister Dr. Swarnim Wagle has dismissed the possibility of demonetization in Nepal, stating that the government has no plans to adopt such a policy despite growing public debate.

Responding to a suggestion on social media platform X, the minister clarified the government’s position, stating simply, “We won’t do it.” The comment came after a user advised against implementing a move similar to India’s 2016 demonetization, citing its limited effectiveness and adverse impact on vulnerable populations.

The discussion around demonetization has gained traction in recent weeks in Nepal, particularly in the context of concerns over corruption and the circulation of unaccounted cash. Some voices have called for the withdrawal of high-denomination banknotes, such as Rs. 500 and Rs. 1,000, as a potential measure to curb illicit financial activities.

The debate intensified following reports of large amounts of cash being destroyed during recent protests linked to the “Gen-Z movement,” which fueled public scrutiny over the handling of undisclosed wealth.

However, policymakers appear cautious about pursuing such drastic monetary interventions. Analysts note that demonetization can have significant short-term economic disruptions, particularly in cash-dependent economies like Nepal, affecting consumption, small businesses, and financial stability.

By ruling out the measure, the government has signaled its preference for alternative approaches to tackling corruption and improving financial transparency without resorting to abrupt currency reforms.