"In the past, supply from banks was difficult to get and informal dealers were issuing IRs 100 at Rs 163. Now they are charging Rs 165 for it," said a trader, requesting anonymity.[break]
Students and travelers to India too said they were facing difficulty to get hold of IC from the banks and formal channels, whereas if they paid more, they are readily supplied with the IC by the informal dealers. "In Pokhara, you will get IC only if you pay Rs 165 for IRs 100," said a student.
In bordering cities, traders said informal dealers were charging as much as Rs 168 for IC 100. Traders blamed the Nepal Rastra Bank (NRB) for not seriously monitoring the market and checking such anomaly seen in the lake city.
Bankers said the shortly supply of IC runs deep in the market as the central bank has tightened its distribution. Worse still, they said the banks were finding fewer IC coming into the system. "When the currency is selling at premium rates in informal market, why will anyone return it to the banks or financial institutions," said a banker, requesting anonymity.
The central bank officials in Pokhara also admitted short supply of IC had surfaced in the lake city as its demand suddenly rose up in recent months. They also acknowledged the black marketeering of IC was on the rise.
"The IC is not flowing in the system as it used to. This clearly indicates the currency is getting circulated and exchanged out of the system. When that happens, IC is bound to gain premium price," said a NRB official.
However, Bholanath Baral, manager of NRB Pokhara office said the central bank was trying its best to manage the supply. "We have prioritized the needs and are issuing currency based on that," said he.
According to Baral, the NRB office in Pokhara had deposit of Rs 20 million worth of IC. But it was far too less when compared to demands. He also admitted that the bank and financial system were lately collecting lesser IC than what they used to in the past.
IC is high in demand across the country to finance cross-border trade, pilgrimage, and other travels to India and for students studying in India.
Related story
Black is bold
