Overall economy has not gone into tailspin yet: NRB

This undated image shows the building of Nepal Rastra Bank in Kathmandu. Photo courtesy: NRB

KATHMANDU: At a time when news reports have come, warning of economic slump in the country, Nepal Rastra Bank (NRB) has said the overall economic status of the country has not gone into a tailspin yet.

At a programme organised by Reporters’ Club in Kathmandu on Thursday, Executive Director and Spokesperson at NRB Gunakar Bhatta viewed that although the economy witnessed some stress due to liquidity and inflation, the pillars of economy were still strong. He admitted that Moscow’s war with Ukraine has impact on Nepal’s economy. It affected our supply system, he said.

Bhatta further informed that although the foreign exchange reserve was slightly lower than the corresponding period of the last fiscal year, there was no need to panic at all. As the Covid 19 impact is subsiding, positive changes will be seen in the economy, Bhatta claimed.

The government has tightened the import of luxury goods. “Currently, we have the reserve that suffices the import of goods and services for six and half months,” he said.

The central bank has recently directed banks and financial institutions (BFIS) not to issue letter of credit (LC) to business firms or importers for importing non-essential items.

According to bankers, the central bank’s directive aims at saving the country’s economy citing the loss in the balance of payments. With the central bank’s directive, the biggest impact will be on vehicle importers. It is said, the NRB officials were concerned about halting the import of vehicles.


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