Nepali banks to "discourage" Import LCs following "verbal directive" from central bank

Nepali banks said they would follow a “verbal directive” from Nepal Rastra Bank (central bank) to “discourage” traders from opening LCs to import non-essential goods such as motorcycles, scooters, certain automobiles, and other luxury goods.

The move is an effort to curtail the outflow of Nepal’s rapidly depleting foreign exchange reserves. According The Kathmandu Post, bankers have not received formal communication from the central bank. It is also unknown from reporting how the verbal directive was disseminated.