Nepal next in facing forex crisis? Fuel lines & import bans begin

Nepal is raising the red flag of concern as foreign exchanges reserves dip and long queues at petrol pumps are forcing onlookers to make the uncanny comparison with Sri Lanka.

The Nepal government is considering to declare a two-day holiday in public sector offices this month to reduce fuel consumption, as the country battles a foreign exchange crisis and the price of petroleum products sky-rockets. A week ago Nepal’s central bank has announced a ban on the import of vehicles and other luxury items to curtail citizens from spending forex.

Also read/watch | SBI hikes rates, loans & EMIs get more expensive

Tourism-dependent Nepal is experiencing a slump in its foreign reserves after the COVID-19 pandemic brought international travel to a halt. .The forex reserves are now only enough to pay for imports for 6.7 months. The central bank of the Himalayan country keeps a target of covering at least seven months of imports.

To deal with the forex crisis, the Nepal government has urged Nepalese nationals living abroad to open dollar accounts in banks in the country and make investments.

Also read/watch | Delhi: Auto, taxi drivers on 2-day strike over record high CNG prices