The cash margin in imports has been removed. The Nepal Rastra Bank had arranged for a cash margin of 50 to 100 percent on Letters of Credit For Import (LC) for a year to tighten the import after the foreign exchange reserve crisis raised in Dhukuti.
On Thursday, issuing a consolidated circular, the bank said that all types of cash margin arrangements have been removed. Now businessmen do not have to keep any kind of cash margin for imports. Last month, the bank removed the provision of cash margin on the import of construction materials.
Recently, the private sector has been opposing the system implemented. The International Monetary Fund also expressed interest in the policy of import restriction adopted by Nepal.
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