Nepal Asks Citizens Abroad to Help Forex Reserves

Nepalese Finance Minister Janardan Sharma said on Saturday that Nepal is asking citizens living abroad to deposit funds in domestic banks effort to provide adequate liquidity in the financial system and protect foreign exchange reserves.

Sharma claimed that Nepal is not in an economic crisis, despite rising commodity prices and the tourist industry’s struggle to recover from the COVID-19 pandemic.

Sharma said that Nepalis would maintain their connection and benefit from the six to seven percent interest rates offered by Nepali banks.

Sharma also said if 100,000 Nepali nationals living abroad deposited $10,000 each in Nepali banks, it could go a long way to help Nepal overcome the current liquidity constraints.

“The money to be received from the United States over five years is a (non-refundable) grant,” Sharma said.

Nepal has also chosen to accept 659 million USD in aid from the United States and approximately 150 million USD in soft loans from the World Bank.

Sharma added that Nepal’s economy was not in crisis and that the country’s situation does not compare to that of Sri Lanka, which is currently experiencing its worst economic crisis.

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