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With the declining reserves of foreign currency around the banks of Nepal, Nepal Rashtriya Bank has announced further restrictions on the use of foreign currency on imports. These new restrictions now include restrictions on anyone taking out foreign currency for foreign travel.
Now, the central bank only provides foreign exchange twice a year to people travelling to foreign countries. A Nepali can only exchange a maximum of $1500 of foreign currency for travel in foreign countries.
The central bank has issued such restrictive measures in the wake of declining foreign exchange reserves in the first four months of the current fiscal year due to a slowdown in remittance flows and tourism income due to the COVID-19 pandemic. Many have expressed a change in Nepal's trade policy to address the trade deficit which is the main cause for the lack of foreign reserves in the banks of Nepal.
Photo Courtesy: [samanantar/Wikipedia Commons]
