Nepal Rastra Bank Removes Margin On Imports

January 20, 2023 | Investopaper

Nepal Rastra Bank has eased the import policy. The central Bank has removed the margin system imposed on the import of 46 types of goods since Magh 26, 2078 BS after the foreign exchange reserves have improved.

With the improvement in the foreign exchange reserve adequacy index, the import policy has been made flexible. In the last fiscal year, the margin system was imposed as the foreign exchange reserves could cover the import of goods and services for a period of less than seven months.

At that time, the Central Bank had made 100 percent margin mandatory for 41 types of goods and 50 percent margin for 6 types of goods. NRB had made such provision for the import of silver, motorcycles, vehicles, sugar, metal furniture, water, glass products, make-up products, etc.

As the foreign exchange reserves declined due to rising prices in the world market and increasing imports in Nepal, the central bank had mandated a cash margin on the import of those items.


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