Nepal
Amid dwindling forex reserves, Nepal limits imports
Kathmandu: The Nepal government has imposed restrictions on the imports of non-essential goods, including cars, cosmetics, and gold, in order to save its foreign currency reserves, BBC reported on Tuesday.
The crisis is the result of a decline in tourism spending and foreign remittances sent by Nepalese working abroad which has driven up the government debt.
The government removed the governor of the country's central bank Maha Prasad Adhikari from his position last week.
According to the country's central bank, Nepal Rastra Bank, foreign currency reserves fell by more than 16 percent to 1.17tn Nepali rupees ($9.59bn) in the seven months till the middle of February.
During the period, the amount of money sent to Nepal by people working abroad fell by almost 5 percent.
He added that importers were allowed to bring in 50 "luxurious goods" if they paid for them in full.
"This is not banning the imports but simply discouraging them," an official said.
Government debt in Nepal has risen to more than 43 percent of its gross domestic product, as officials increased spending to help cushion the economic impact of the pandemic, Nepal's finance ministry said.
The ministry also said indicators of the country's economic health were "normal".
Earlier in the day, finance minister Janardan Sharma said Nepal's debt was lower than other countries in the region and elsewhere and there was no need to compare the country's crisis with that of Sri Lanka.
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