KATHMANDU, April 8: Brushing aside reports that the country was heading to an economic slump, the central bank of the country, Nepal Rastra Bank (NRB) has said the overall economic situation of the country is not in a tailspin.
At a program organized by Reporters' Club in the federal capital on Thursday, Executive Director of NRB Gunakar Bhatta, who is also a spokesperson for the central bank, stated that although the economy has witnessed some stress due to liquidity and inflation, the pillars of the economy are still strong. He admitted that Nepal's economy is experiencing impacts of the Russia-Ukraine war, which has affected the country's supply system.
Revised interest rate corridor system introduced
Bhatta further said that although the foreign exchange reserve is slightly lower than the corresponding period of the last fiscal year, there is no need to panic at all. As the COVID-19 impact is subsiding, positive changes will be seen in the economy, Bhatta claimed.
Mentioning that the government has tightened the import of luxury goods, he said "Currently, we have forex reserves sufficient for the import of goods and services for six and a half months."
(RSS)
