Stopping the import of luxury items to improve economic situation: NRB

Nepal Rastra Bank (NRB) has on Thursday justified that the move to stop the import of luxury items is simply mandatory to arrest the alarming decline of the foreign exchange (forex) reserves of the country.

The import of luxury items has been stopped to prevent the decline in foreign exchange reserves due to the rising deficits and high imports,” said NRB Spokesperson Gunakar Bhatta was quoted by media sources as saying. It will help in managing the external sector and prevent further damages to the country's economy.

He also reportedly said the rumors that the economy of Nepal will suffer a grave crisis like that of Sri-Lanka are hollow.  NRB has foreign exchange reserves to support the import of goods and services for 6.7 months, according to him.

Stating that many people have started leaving the country for foreign employment, He opined," The inflow of remittance may improve very soon, thus giving the much-need relief to the crippled economy.