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31/08/2013

डलर र सुन सँगसँगै उकालो

सुन र डलरको मूल्यमा परस्पर विपरीत सम्बन्ध हुन्छ भन्ने अन्तर्राष्ट्रिय मान्यता नेपाली बजारमा भने लागू हुँदैन। नेपाली बजारको पछिल्लो तथ्यांकले यसलाई फेरि पुष्टि गरेको छ। पछिल्लो एक महिनामा सुन तोलाको ५१ हजार ८ सयबाट ५९ हजार ९ सय रुपैयाँ पुगेको छ। अमेरिकी डलर यसै अवधिमा ९४.७० बाट १ सय ५ रुपैयाँ पुगेको छ। नेपालमा सुनको मूल्य अन्तर्राष्ट्रिय सुन बजारले र डलर भारतीय मुद्राको विनिमय दरले तय हुन्छ। त्यसैले सुन र डलरको अन्तर्राष्ट्रिय सम्बन्धको प्रभाव स्थानीय बजारमा पर्दैन।\
मंगलबार सुन तोलामा एक हजारले बढेर ५९ हजार ९ पुगेको छ भने डलर दुई रुपैयाँले बढेर एक सय पाँचमा कारोबार भएको छ। मंगलबार भारतमा अमेरिकी डलरको विनिमय दर बढेर ६६ रुपैयाँ २५ पैसा पुगेपछि नेपालमा त्यसको प्रभाव परेको हो। एक साताअघि सुन तोलाको ५६ हजार ६ सय ५० हुँदा डलरको विनिमयदर एक सय रुपैयाँ पुगेको थियो। मंगलबार सुनको मूल्य बढेर ५९ हजार ९ सय हुँदा डलर १ सय ५ पुगेको छ।
केही महिनायता उकालो चढेको डलरलाई सुनको मूल्यले पनि साथ दिइरहेको छ। भारत र चीन जस्ता ठूला देशले आर्थिक सुरक्षाका लागि सुन किनेर राखेकाले सुनको अन्तर्राष्ट्रिय बजारमा मूल्य बढेको हो। भारतीय मुद्रासँग स्थिर विनिमय दर निर्धारण गरिएको नेपाली रुपैयाँ भने भारु घट्दा घटेको हो।
'सुनको माग र आपूर्तिले मूल्यलाई तलमाथि बनाउने भए पनि सामान्यतया अमेरिकी डलर कमजोर भएको बेला लगानीकर्ता सुनतिर आकर्षित हुन्छन् र मूल्य बढ्ने गर्छ,' अर्थविद चिरञ्जीवी नेपाल भन्छन्, 'तर पछिल्लो पटक स्थानीय बजारमा मात्र नभई अन्तर्राष्ट्रिय बजारमा नै सुन र डलरको समीकरण आश्चर्यजनक देखिएको छ।'
नेपाली मुद्रा बलियो भएको बेला भने सुन र डलरको पुरानै सम्बन्ध हुने नेपाल सुनचाँदी व्यवसायी महासंघका अध्यक्ष मणिरत्न शाक्य बताउँछन्। 'अन्तर्राष्ट्रिय बजारमा सुनको मूल्य बढेको छ यहाँ पनि बढेको छ,' शाक्य भन्छन्, 'डलरको भाउ बढेकाले सुन अझ महँगो पर्न गएको छ।'
अर्थविद मदन दाहाल नेपालको मुद्रा कमजोर भएकै कारण सुन र डलरको सकारात्मक सम्बन्ध देखिएको बताउँछन्। माग र आपूर्तिमा मूल्य निर्धारण हुने भए पनि नेपालमा मागभन्दा बढी आयात भएको तर्क गर्छन्। नेपालमा उच्च आम्दानी हुने परिवारको संख्या थोरै छ। नेपाल भित्रिएको सुन नेपालमा प्रयोग नभएर भारतलगायत देशमा पुगेको छ। त्यसैले डलर र सुनको नयाँ समीकरण घरेलु बजारमा दिगो नहुने उनको भनाई छ।
विश्वभर सुन मागको ९० प्रतिशत लगानी र गरगहनामा प्रयोग हुने गरेको विश्व सुन परिषदको तथ्यांक छ। औद्योगिक प्रयोजनका लागि जम्मा १० प्रतिशत मात्र सुन प्रयोग हुन्छ। परिषदका अनुसार सुनको कुल मौज्दात पछिल्लोपटक वार्षिक १.५ प्रतिशतले बढिरहेको छ।

03/08/2013

असान्जे र स्नोडेन राम्रा मान्छे हुन् या खराब, उनीहरुले सही गरे या गलत, यो बेग्लै विश्लेषणको विषय हो । तर, विश्वमा प्रभुत्व जमाइरहेको मुलुकका लागि एक्काइशौं शताब्दीको दोस्रो दशकको एकजना सामान्य व्यक्ति यतिसाह्रो खतरनाक हुन सक्छ भन्ने शिक्षा चाँहि यी अत्याधुनिक दुई व्यक्तिले दिएका छन् ।

01/08/2013

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01/08/2013

Billions can be invested by public on hydropower

When Mega Bank issued primary shares worth Rs 699 million recently, it received applications for over 20 times more at Rs 14.20 billion. Applications of Rs 6.60 billion were received earlier when Commerce and Trust Bank offered shares worth Rs 600 million. Similarly, Civil Bank had received applications of Rs 4 billion for Rs 800 million of shares and Janta Bank Rs 1.80 billion for Rs 600 million.
If the general public were to show the same enthusiasm that they showed when four commercial banks issued shares in the current fiscal year to invest in hydropower sector, the country will produce enough electricity at least to meet domestic demands. “Adequate investment can be attracted toward hydropower sector if the general public were convinced that the sector is also attractive for investment like the banks and financial institutions are,” Chief Executive Officer (CEO) of the Hydroelectricity Investment and Development Company Limited (HIDCL) Dipak Rauniyar states. “Upper Tamakoshi (456 MW) and the four projects worth 270 MW being developed by Chilime Hydropower Company Limited are the examples,” he adds.
The Employees Provident Fund (EPF), the Citizen Investment Trust (CIT), the Rastriya Beema Sansthan (RBS), the Nepal Telecom (NT) and the government has collectively invested Rs 35 billion in Upper Tamakoshi. Similarly, Rasuwagadi (111 MW), Mid Bhotekoshi (102 MW), Upper Sanjen (14 MW) and Sanjen (42 MW) are also being built with domestic investment. EPF has invested Rs 16 billion in these four projects while the rest is expected to be raised from the affected locals and the general public. Rauniyar argues that investment of the general public could not be attracted toward hydropower sector as good projects are not selected and the people are not aware about the profitability of investment in the sector. “There are grounds to believe that enough capital can be generated from the general public, banks and financial institutions and institutional investors for big projects,” he claims.
The fact that so many people apply to invest in banks and financial institutions show their eagerness to invest. Experts believe that it is possible to attract investment toward hydropower sector if it were regulated like the banks and financial institutions, and the hydropower companies were also transparent. Rauniyar, reminding that Chilime, Butwal Power and Arun Valley Hydropwoer Company Limited provided good returns to the investors, opines that the projects that can give returns have to be selected. “Why should good hydropower projects not attract applications when over 20 times of applications are received for shares of a commercial bank?” he asks.
He claims that enough capital can be generated through the banks and financial institutions, insurance companies, EPF, CIT, RBS, NT and the general public. The welfare funds of the Nepal Army, the Nepal Police and the Armed Police Force (APF), Social security Fund, HIDCL and non-resident Nepalis can also invest billions of rupees, he feels. He says the banks and financial institutions can invest Rs 50 billion in the present situation. But they have invested just Rs 17 billion, according to NRB.
Share analyst Rabindra Bhattarai also feels that there is sufficient capital in the country to build hydropower projects. “It is not that foreign capital is not needed but domestic investment can help attract more foreign investment,” he states. “The general public should also be attracted to the hydropower sector, and not just the banks and a handful of investors, and made richer,” he adds. Referring to the policy of providing 10 percent shares to the locals adopted by Upper Tamakoshi, he says the provision should be made mandatory for all projects. He states that the sector has not received investment from the general public as they have not been explained that the sector can also provide adequate returns. “The returns of investors in banks are less as the banks have to pay 30 percent tax on their income. Hydropower is the only sector where the government has announced tax exemption for 15 years and it can, therefore, provide more returns,” he explains.
He insists that billions of rupees can be raised to construct big projects through banks, promoters and the general public. He argues that transactions amount can be increased and investment also diversified if the share of productive sector is increased in the Nepal Stock Exchange (Nepse) that is dominated by the banks and financial institutions. Stating that there is provision of generating capital from the general public one year after the construction of project starts, he informed that Sanimamai Hydropower is collecting capital using the provision. Hydropower entrepreneur Guru Prasad Neupane said that many projects are not financially viable in lack of physical infrastructures like transmission line. “The current problem is not investment but that of transmission line. Enough investment can be attracted to the hydropower sector if the problem is addressed,” he stated.
But there has been lack of trust among the general public as a few hydropower companies have not provided good returns to the general public despite issuing shares to the public. The stakeholders feel that proper monitoring is required to address the issue. Economist Keshav Acharya believes that productive sector like hydropower has not been able to attract investment from the general public as the banks and financial institutions have, due to lack of transparency. “A regulatory authority is necessary to make the hydropower sector transparent. The general public has come forward with trust to invest in shares of the banks and financial institutions as they are more transparent,” he opines. Stating that there is no problem of capital in the country he stressed that the trust of the general public has to be won first. “Investment will pour in after that.”

01/08/2013

Ceiling on savings in cooperatives

The government will set a limit on individual savings in cooperatives after the investigation committee recommended to do so stating that big transactions are done through cooperatives and risks are raised by unlimited mobilization of savings by a single individual.
The committee formed under Deputy Governor of the Nepal Rastra Bank (NRB) Maha Prasad Adhikari to investigate troubled saving and credit cooperatives had submitted its report to Chief Secretary Lila Mani Paudel on July 12 with recommendations to set a ceiling of certain percent. Another investigation committee led by Joint Secretary at the Finance Ministry Baikuntha Aryal had also earlier recommended for a ceiling of Rs 3 million but the recommendations had not been implemented. The committee led by Adhikari, in its report prepared in five months, has also recommended that board members of cooperatives not be allowed to stay in any executive position at the institution, and promoters, executive chief and member of the accounts committee not be from a single family concluding that some promoters are operating cooperatives as a family business and are misusing savings.
The committee has also recommended that big cooperatives with transaction of over Rs 100 million be asked to publish financial reports every three month to make them transparent. Only banks and financial transactions have been publishing financial details every three month. It has also suggested that special audit should be done in cooperatives with transaction of over Rs 500 million. The report states that risks have increased due to lack of security of the savings with cooperatives and no exchange of credit information. It has advised for provisions to ensure that the cooperatives exchange information among each other and blacklist the defaulters. It has also concluded that the Cooperatives Act has not clearly specified banking transactions done through cooperatives and its area, there are no effective regulatory and supervisory provisions for security of the collected deposits, and self-regulatory provisions were weak in it.
It has also pointed at the weaknesses like some cooperatives being run like a family business, commoners were lured through aggressive advertizing, violation of the ceiling on investment in realty sector, and weak education and training about cooperatives. It has also stated that accounts committees are not effective, regulatory authority Department of Cooperatives (DOC) also lack capabilities, and saving and credit cooperatives are commercial and city-centric. It has also recommended for reform of Cooperatives Act, make all the cooperatives affiliated to subject-wise associations and immediate creation of a separate Micro Finance Authority Act for monitoring of saving and credit cooperatives.
The government had formed the committee on January 25 after problems in big cooperatives in the urban areas. Joint Secretary at the Finance Ministry Krishna Prasad Devkota, Joint Secretary at the Ministry of Cooperatives Ram Krishna Subedi, Joint Secretary at the Ministry of Land Reforms and Management Krishna Raj BC, Vice President of the National Cooperatives Association Bijay Raj Ghimire, President of the Nepal Saving and Credit Cooperatives Association Min Kandel, and Promoter of the National Cooperatives Association Dakshya Poudel were members and Registrar of DOC Kedar Neupane the member secretary of the committee.
Management committee for troubled cooperatives
The committee has also recommended for creating environment for return of deposits by forming a powerful management committee including shareholders to solve problems of the troubled cooperatives unable to return deposits. Such management committees to be formed by DOC will recover loans provided by the cooperatives, auction off assets kept as surety, and investigate hidden assets to recover the loans. It has advised the government to take a special decision to form such management committees due to lack of legal clarity.
The investigation committee led by Adhikari had studied 27 cooperatives including Oriental, Guna, Himshikhar, Exim and others forming technical sub-committees. The report points that cooperatives have invested in realty and other sectors, and savings of the depositors can be returned if such investment were managed properly. Around two dozen cooperatives have failed to return deposits worth around Rs 700 billion in the past one year.
The budget for the fiscal year 2070/71 also announced formation of management committees as per the recommendations of Adhikari’s committee. The budget also has provisions of NRB deploying team of experts for monitoring of cooperatives with transaction of over Rs 500 million and enhancing capabilities of DOC

01/08/2013

Investors earn even when share market is falling

The capital market does not necessarily have to be bullish to reap benefits as Shri Ram Sharma Dhakal of Gongabu-7 has shown. He invests his money astutely analyzing the market direction even as many investors are suffering loses with the market falling in the past five years.
He sold shares of Everest Bank, that he had procured at Rs 1,174 per share a year ago, at Rs 1,555 after the Securities Board of Nepal (SEBON) allowed trading of 19 percent of promoters’ shares in the secondary market. He procured more shares as the market steadied after falling following rumors of the promoters’ shares flooding the secondary market. “We can reap benefits if we sell our shares when its price is falling and again procuring them when the chances of it further falling rise,” he explains. “The majority of investors make losses unable to manage share investment properly,” he adds. He has earned profit even when the market is falling as he has not made all his investment on a single sector.
Mahesh Poudel of Syangja who invests his small savings in the capital market also believes, like Dhakal, that the market does not have to necessarily rise to earn profit. “One cannot earn huge like when the market is rising but can still earn when it is falling,” he states. He has also been investing in companies of different sectors. “Share price of all the companies of all sectors does not fall simultaneously. One should, therefore, be very careful while buying and selling shares,” he adds. Stating that technical analysis is necessary before procuring shares of any company he says, “We should sell our shares when its price is falling and again procure them when we feel that it will not fall further.”
Investor Bishnu Bhandari feels that investing all the money at a single basket increases loss when the share price falls and says investing small amounts in different companies will only result in decrease in rate of returns and not losses when the market falls. He believes serious analysis of information that can affect share market is necessary before making decisions. “The whole market, and not just an individual, can gather momentum if investments are made in such a way,” he adds.
Managing Director of Hathway Investment Ambika Poudel feels trading according to the market situation keeping in mind the difference in price at the moment and when one had procured shares will provide returns. “One can suffer big losses while waiting to earn more. The investors have to be dynamic according to the state of the market and should diversify the investment deeply analyzing the companies concerned,” he opines and advises that one has to sell shares even at a smaller profit depending upon the state of market.
“If the price of shares that one has bought at Rs 500 falls to Rs 475 after a few months and there are signs that it will drop further, one has to sell the shares even at a loss of Rs 25,” Dhakal suggests. “The loss can be compensated by buying more shares than one has sold once you know that it will not drop further,” he adds. Chief Executive Officer (CEO) of Siddhartha Mutual Fund Dhruba Timilsina also feels that the risk of loss is greater while investing in the shares of a single company. “You have to take a decision to sell once the price starts to fall,” he says.
The investors advise to make a habit of waiting and observing, and investing according to the state of market. They also suggest that the financial details of the companies, state of good governance, and information and analysis of the companies should be considered while investing in shares. “One will not get returns but may lose the investment instead while investing according to market rumors,” Dhakal states.

01/08/2013

Governor Dr Yuba Raj Khatiwada, stating that the Nepal Rastra Bank (NRB) is also the guardian of debtors and all the stakeholders and not just that of bankers, said that its policies are directed accordingly. Addressing a talk program on Monetary Policy and Financial Sector Reform organized by the Independent Business News on Wednesday he said regulation has, therefore, been made stricter.
The new monetary policy has reduced the spread rate to five percent from the current 7.1 percent amidst complaints that the banks have been charging higher interest rates on loans and paying very low rates on the deposits. “We are the main guardian of the financial sector, and banks and financial institutions the second,” he stated. “Regulation has been toughened as this sector runs on others’ money. There is no alternative to following these rules,” he added. Claiming that NRB has not fixed the spread rate he stressed on the banks and financial institutions to make the interest rates transparent and justifiable. “We are paying eight percent on treasury bills and you are paying only two percent to the depositors,” he added. “Should not the banks be responsible about their method of changing interest rates as the price of vegetables?” he asked. He stated that NRB has not tried to expand credit by reducing cash reserve ratio (CRR) but just made environment for credit expansion. He argued that the banks can increase investment on government security while CRR is reduced. “Debentures worth Rs 44 billion will come into the market this year. We have reduced CRR also to ensure that the banks will not face liquidity problem to invest on them. The banks themselves should create restrictions like credit deposit ratio (CDR), capital adequacy and others,” he said. Speaking with his trademark aggression after hearing the comments of bankers during the debates on the new monetary policy, governor stated that the central bank was not an institute for religious sermons but a regulatory body. “NRB is not a supermarket of policies,” he said referring to the criticism about the issues the monetary policy failed to address. “All kinds of tools and instructions that the stakeholders wish for are not available in our store.” He also argued that NRB is not a body to provide panacea for all ills and clarified that solution of all the problems should not expected from the central bank when the burgeoning trade deficit, rising inflation and low economic growth rate are providing major challenges to the economy. He said that debates about the policies and challenges posed to NRB helps it to further stay firm.
Economist Keshav Acharya and President of Nepal Bankers' Association (NBA) Rajan Singh Bhandari had put their views about the monetary policy before the governor. Acharya stated that trade deficit, inflation and low economic growth rate are the major challenges facing the economy now, and adoption of a policy to expand credit targeting economic growth rate can put pressure on inflation. "I say that the monetary policy has become a sort of credit policy," he said. Stating that the economy must be operated in full capacity, he added that the liberal monetary policy will address economic growth rate, but inflation and trade deficit will remain as challenges.
Bhandari claimed that the banks have suffered not just due to their own fault but even that of NRB. "It's like chiding the kids for not walking carefully if they bump into a water pot, and scold them for not putting it at the right place should the parents bump into it," he stated. "NRB only puts the blame on banks," he added. He called the provision of project financing in the monetary policy impractical. "We have a different culture. Trying to implement the practices of developed countries here will not work," he argued. "Americans have to worry if the adolescents do not fall in love. Worry starts here if they fall in love," he gave an example. Stating that merely reducing CRR while keeping a stable CDR will not boost investment, he called fixing the spread rate impractical. He argued that fixing the spread rate will result in similar kind of interest rates across all the banks and financial
institutions and will lead to problems. Governor responded to this comment during his supermarket reference later.
Governor called the demand to reduce CDR absurd. "The size of credit will rise in accordance with the increase in deposits. I cannot again take the risk after burning my hands through CDR previously," he said and compared the demand of banks to reduce CDR to seeking permission to commit su***de. "The central bank is a body that sincerely tries to solve the financial problems. We have to either make it more powerful if we start to seek solutions to all kinds of problems from it or lower the expectations from it," he urged. He claimed that he has not forgotten his responsibility. "NRB is situated near the prime minister's residence and understand that we have to work remaining close to the other bodies and stakeholders," he commented. "We cannot say we are the king of any island like Alexander Shepherd nor have we made decisions staying in the Ivory Tower."

19/07/2013

Finance Minister Shankar Prasad Koirala has stated that domestic production should be raised to minimize trade deficit and claimed that the new budget has stressed on agriculture as it provides quick returns.
Addressing an interaction program on the budget for fiscal year 2070/71 on Monday, he said agriculture received top priority ahead of energy sector as it provides regular returns from one month to a year. He claimed that agriculture is on top priority for the short-term returns though energy received top priority in long-term strategy. “The immediate alternative for minimizing trade deficit and promoting export is agriculture,” he stressed. “The budget has been formulated incorporating the 13th Three year Plan and the government is trying to fulfill the objectives of ridding the country of load-shedding within three years by keeping projects of national pride at the center. This will create an environment to encourage the private sector to invest in energy,” he added.
He said construction of a dry port and a national exhibition site using the government land in Chobhar is also top in priority and stressed that export can be promoted only through coordination and cooperation of the government, private sector and cooperatives. He claimed that the fee for declaration forms while exporting goods has been reduced to Rs 100 from Rs 600 to promote export. He claimed that the economy will be stimulated as a balanced full budget incorporating all the sectors has come in time and added that the budget and programs are election-centric as it is the year of election. He stated that the government changed some tax rates and brought a few new programs due to the responsibility of running the country though the election government did not wish to do so. “We believe this will not put the elected finance minister in any difficulty and will easily be accepted,” he added. “A few old programs of the type that could not function have been removed and not all the old programs have been continued while a few programs have also been added,” he argued and informed that the number of programs have been reduced to 452 from last year’s 459.
Koirala revealed that Pashupati Area Development, Lumbini Area Development, President Chure Conservation and Bheri-Babai Diversion have been named as additional projects of national pride along with 19 others identified by the previous government. He claimed that the implementation aspect will be strengthened by providing authorizatio in time. He said work has been done to ensure that all the ministries will send programs to the National Planning Commission (NPC) within seven days of the new fiscal year and NPC will provide authorization a week later. Stating that implementation will be made effective by making separate legal arrangements for budget implementation and accountability, he revealed that the secretaries of each ministry will monitor and review implementation of budget every month. He said implementation status will also be reviewed every two month by finance minister and every four month by the National Problems Resolution Committee. “We can achieve the growth rate of 5.5 percent as the government is alert about implementation aspect,” he claimed.
He revealed that salary and allowances of the lower-level staffers have been reviewed by 28 percent and top-level officials by 21 percent. “The ministry has just implemented the recommendations of the salary fixation committee led by Chief Secretary Lila Mani Paudel. Salary has been raised by 18 percent and monthly allowances increased by Rs 1,000 as there has been average inflation of 21 percent in three years,” he argued. He claimed that inflation will be controlled by utilizing appropriate tools though election and salary hike will put pressure on inflation. He said the government has raised ceiling for exemption of income tax to Rs 200,000 per year for individuals and Rs 250,000 for a couple while excise duty for alcoholic beverages and to***co products has been raised by 11-15 percent.
Vice Chairman of NPC Dr Rabindra Kumar Shakya, during the program, stated that the budget was formulated paying attention to the programs that can provide returns within three years prioritizing the programs that provide immediate returns to the public. NRB Governor Dr Yuba Raj Khatiwada claimed that monetary and financial instability will be avoided as the Constituent Assembly (CA) election and local bodies grant, salary hike for staffers and public expectations have been considered while formulating the budget

12/07/2013

The number of letters of credit (LC) issued by commercial banks for import of luxury goods like vehicles has dropped after appreciation of the US dollar as the importers are adopting a wait and watch strategy as predicting fluctuation of dollar is proving difficult.
They say they are reluctant to take additional risk as the importers who have not done forward cover, which is the payment fixed at the exchange rate of the day LC is issued with the banks taking risk for fluctuation in the value of dollar, have been losing following the appreciation of dollar. The majority of importers had stopped to opt for forward cover as the US dollar was weakening until a few months ago. “There is risk involved even in forward cover,” former president of Nepal Overseas Export Import Association Akhil Chapagai states. “Such risk is taken especially in import of industrial raw materials,” he adds. Nepali importers open LC three months before importing goods from Europe and two months ahead of importing from Asian countries like China, Hong Kong, Singapore and others.
Bankers reveal that very few LCs have been opened for import of vehicles after the US dollar started to become strong two months ago. “It is not easy to import vehicles from the third countries after appreciation of dollar,” Chairman and Managing Director of Constant Business Group Rajesh Kaji Shrestha says. “Not just the import through LC, but even through telegraphic transfer (TT) and draft payments have fallen after the appreciation of dollar,” he adds. The government has made opening of LC mandatory for import of more than Rs 2 million worth of goods like vehicles. Bankers state that there is not much problem in opening LC in Indian currency due to the stable exchange rate. Entrepreneurs claim that import of Japanese vehicles has also fallen as Japanese yen has also appreciated along with the US dollar. “We are adopting the strategy of wait and watch now,” Managing Director of Laxmi Intercontinental Anjan Shrestha states.
More vehicles are generally imported at the end of fiscal year speculating that the customs duty may be raised in the next fiscal year. But import has dropped even at the end of fiscal year this time due to the appreciation of dollar. The government levies 241.75 percent tax in import of cars, vans, and sports utility vehicles (SUV) including 226 percent customs duty. “Most of the importers had got forward cover as more LCs were issued last year,” Chief Executive Officer (CEO) of Nepal Investment Bank (NIB) Jyoti Prakash Pandey reveals. “But they have not got forward cover in most of the LCs this year as they suffered loss when the US dollar depreciated a bit last year,” he reasons.
Pandey claims that importers have been discouraged more for having to pay more due to the high customs duty than the issue of forward cover. NIB has been opening LCs for vehicles including British Land Rover. Bankers reveal that the number of LCs opened for import of industrial raw materials and commercial items, however, has not fallen due to the latest appreciation of the US dollar. CEO of Rastriya Banijya Bank, that opens LCs mostly for industrial raw materials, Krishna Prasad Sharma says the number of LCs opened for industrial raw materials has not fallen comparatively. “There is no immediate impact in import of industrial raw materials as it is done on the basis of agreements of firms to import a fixed quantity in a year,” he explains.
Chapagai says the goods to be imported by opening LCs now will arrive around the festive season of Dashain and Tihar, and the consumers have to be prepared for price hike then due to the appreciation of dollar now. There have been problems even in settlement of many LCs due to depreciation of the Nepali currency by over seven percent in the past one month

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