Nepal’s remittance equilibrium

Liquidity trap is not a technical problem; it is a governance crisis demanding political courage.

According to a report published by the Nepal Rastra Bank on October 14, it has absorbed liquidity of Rs6,785 billion in two months, through deposits and other standing facilities from the market. This is an attempt by the central bank to stabilise the market flooded with unutilised capital. The report also shows that bank deposits have increased to Rs7.4 trillion, foreign exchange reserves stand at an all-time high with $20.41 billion, which will be sufficient to fund imports for 16 months.