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Nepal has decided to stop the import of luxury items, including garments and textile products, to prevent decline in foreign exchange (forex) reserves. Terming proper management of forex reserves the biggest challenge, Nepal Rastra Bank (NRB) spokesperson Gunakar Bhatta recently said that the decision has not been taken due to any economic crisis in the country.
Urging citizens not to panic, he said NRB has foreign exchange reserves to support the import of goods and services for 6-7 months. The economy has lately shown positive signs, he said.
As many people have again started leaving the country for foreign employment, Bhatta said the flow of remittance may improve soon.
A letter of credit (LC) will not be open for the import of readymade garments, textile products, thread, design vehicles, mopeds, bicycles and necessary motor equipment, machinery and spare parts, paddy, rice, gold, electrical appliances and silver, according to Nepalese media reports.
NRB will also not open LC for the import of perfumes, make-up items, hair creams and shampoos, wood, charcoal and furniture, footwear and boots, braces for teeths, weaving cloths, umbrellas, walking sticks and feathers.
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