Rupee appreciates

Post Report

KATHMANDU, Jan 15 - In a turn of events, Nepali currency appreciated by 30 paisa against the US dollar - the most powerful currency of the world. The exchange rate of Nepali rupee against the US dollars in the forex market today fell from Rs 74.65 to Rs 74.35.

This is the first time in many years that the Nepali currency appreciated against the greenback. Nepali rupee in the past six months had depreciated by over 7 per cent.

"The slump in the demand of greenback is caused by the recent slashing of interest rates in the US," said Yuba Raj Khatiwada, Chief Economic Advisor of Nepal Rastra Bank.

Similarly, Pramod Rizal, president of Foreign Exchange Dealers’ Association of Nepal, said, "Appreciation of the Nepali currency comes as a result of excess dollar holding with the banks and slumping demand of the greenback."

Nepal Rastra Bank, the central bank of the country, had to intervene in the forex market a number of times lately to absorb the excess dollar holding of commercial banks. Just a week ago, NRB had procured US $ 18 million from the market.

"The appreciation of the Nepali rupee against the dollar brings it more realistic to the existing exchange rate of the dollar with the Indian currency," said Rizal. Any fluctuation in the Indian rupee is automatically transferred to Nepali rupee, which bears a fixed exchange with the Indian currency.

Though imports will get cheaper nominally, the latest appreciation of the rupee would not be encouraging for exportable goods as it will erode their competitiveness, albeit marginally, in the international markets. Woolen carpet and ready-made garments, which occupies more than 80 percent of the total overseas exports, is likely to be the sufferers.

China ready to expand trade

Post Report

KATHMANDU, Jan 15 - Zeng Fuyong, Chinese Ambassador to the Kingdom of Nepal has said that the Chinese Embassy is ready to take necessary measures to expand trade relation between Nepal and China. Addressing a reception organized recently by Nepal Foreign Trade Association, Ambassador Fuyong said he is always sensitive to extend cooperation in joint investments and technology exchange that can benefit both China and Nepal. He also reiterated that the Embassy is ready to work for easier accession of Nepali goods into the Chinese market by minimizing difficulties lying in trade relation between the two countries.

Speaking on the on the occasion Lokmanya Golchha, President of the association thanked the Ambassador for his cooperation in arranging issuance of visa for Hong Kong at the recommendation of the association and said the facility has played an important contribution in expanding trade relation between Nepal and China.

Stressing upon the comprehensive cooperation of Chinese Embassy in channeling the trade through banking system to control illegal imports to Nepal, Golccha urged to take measures to squeezes the expanding Nepalese trade deficit with China and appealed for Chinese technical cooperation to enhance competitiveness of Nepali goods in the international market.

Shrestha, meets an envoy

KATHMANDU (PR) - Pradip Kumar Shrestha, President of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Avi Nir, Israeli Ambassador to Nepal met and discussed issues of bilateral interest today.

According to a press release issued here by the Federation, Shrestha and Nir held talks on bilateral trade, sharing of information and technology, and economic and bilateral cooperation, among others.

The two also discussed possibilities of joint investment in Nepali hydropower, tourism, irrigation and agriculture sectors. Shrestha also stressed on the need to set up direct air links between the two countries, states the release

On the same occasion, Rabi Bhakta Shrestha, First Vice President of FNCCI, stressed on the role that the consulate office can play in promoting bilateral trade, joint investment and economic cooperation, concludes the release.