Luxury items 

Nepal bans imports of luxury items amid dwindling foreign exchange reserves: report

Nepal has banned the import of luxury items to counteract the decline in the country’s foreign exchange (forex) reserves.

The biggest challenge for the Nepalese government is the proper management of foreign exchange reserves, Nepal Rastra Bank (NRB) spokesman Gunakar Bhatta said on April 7, myRepublica, a national English-language daily published by Nepal Republic Media in Kathmandu.

He added that the government is trying to avoid new problems at the earliest by stopping the import of luxury items and remaining vigilant.

“Import of luxury items has been halted to prevent decline in foreign exchange reserves due to growing deficits and high imports,” Bhatta said.

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He added that the NRB had to stop importing some items to manage the external sector to avoid further problems to the country’s economy.

Bhatta also said that the NRB has not stopped importing luxury items due to an economic crisis in Nepal. He mentioned that there was no need to panic as the rumor said about the problems with the economy.

NRB has foreign exchange reserves to support the import of goods and services for 6.7 months, Bhatta said, adding that the economy has been showing positive signs lately.

Stating that several people have started to leave the country to work abroad, he noted that the flow of remittances may improve very soon.

Import Prohibited Items

The import of bicycles, designer vehicles, mopeds and necessary automotive equipment, rice, textile products, machinery and spare parts, gold, paddy, electrical appliances, ready-made clothes, money and wire was banned.

Besides these items, a Letter of Credit (LC) will also not be opened for the import of cement, toys, jars, sporting goods and related items, decorative stone materials, silver, silver carved materials, fireplace, furniture and related items, and bottles until further notice.

The LC will also not be open to the import of wood, hair creams and shampoos, perfumes, walking sticks, shoes and boots, cosmetics, dental appliances, charcoal and furniture, umbrellas, feathers and weaving clothes.

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Imports of several items including herbs, chillies, fish, vegetables and nuts, dairy products, betel nuts, chickpeas, natural honey and eggs, bananas and crisps, meat , optical, medical and surgical equipment were also banned.

Meanwhile, amid fears Nepal’s economy is facing a crisis situation like Sri Lanka’s, Nepal’s Finance Minister Janardhan Sharma said the country’s economy will not plunge like Sri Lanka’s. Lanka.

Addressing the “National Conference on Economics and Finance” organized by the Nepal Rastra Bank (NRB) on April 8, Minister Sharma denied rumors that the country’s economy is on the verge of collapse. collapse like that of Sri Lanka.

He added that Nepal’s economy is relatively better than Sri Lanka’s in terms of production and income system and the country is not burdened with massive foreign debt.

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