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Foreign currency reserve!

When the country's trade deficit increased alarmingly and finally the country faced a negative balance of payment, People's Review had alerted the concerned sector about the possible threat for Nepal's economy. Instead, the government, which has relied on import tax based revenue, didn't want to check the import of luxury goods and also didn't want to encourage import substituting local industries.

As a result, the Nepal Rastra Bank, due to the decline of foreign currency reserve and also decline in the Indian currency reserve, has reached to the stage where it has to cut down the supply of Indian currency to those who want to buy them. If such a trend will continue, Nepal may face serious monitory crisis, economic observers say.

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Publication:People's Review (Kathmandu, Nepal)
Date:Sep 3, 2019
Words:160
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