BY karuna Thapa
Kathmandu, April 5
The Nepal Rastra Bank (NRB) has urged commercial banks not to issue letter of credit (LC)
accounts in order to halt the import of luxury goods, especially automobiles. On Monday, the Nepal Rastra Bank organized a conference of CEOs and officials from commercial banks to examine the matter, since the country’s currency reserves were decreasing and the economy had been in danger.
The import of luxury products other than basic ones will no longer be permitted under the
Nepal Rastra Bank directive. The NRB has also issued severe rules to banks on the opening of LCs. For the next six months, the foreign exchange reserves are insufficient to sustain imports of goods and services. There is now a high demand for automobiles, and electric vehicles must be ordered six months in advance.
Over Rs, 70 billion worth of automobiles and replacement parts were imported during the
current fiscal year, according to NRB officials. Banks argues that on the one hand, the import of illegal products such as betel nut should be allowed, while on the other, the opening of LCs for non-essential goods should not be prohibited. (Sourced from The Nepal Top Daily).
