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New Delhi: The Central Bank of Nepal has made a big announcement. The central bank has banned the import of vehicles and any expensive or luxury goods. Along with the lack of cash in Nepal, there has also been a decline in foreign exchange reserves. This has forced the bank to take this big decision. Nepal’s central bank, Nepal Rastra Bank (NRB), issued the directions after a high-level meeting with officials last week.

After the announcement, NRB spokesperson Gunakhar Bhatt said, “With the increase in imports, there are signs of distress in our economy. That’s why we are thinking of stopping the import of non-essential items immediately.

fall in forex reserves

Like Sri Lanka, the economic condition of Nepal is also deteriorating. Foreign exchange reserves in Nepal have been depleting since July 2021 due to increase in imports, decline in tourism and export earnings.

 

According to the data released by the Central Bank, by February 2022, the total foreign exchange reserves of the country fell by 17 percent to $ 9.75 billion. Which stood at $11.75 billion by mid-July 2021. However, Nepal’s Finance Minister Janardan Sharma has said that the situation in the country is not like Sri Lanka.

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