The Nepal Rastra Bank forbade its citizens from making investments abroad and issued a strong warning in the event that they did on Jan 13.
A notice from the nation's central bank, states that citizens of Nepal are not permitted to buy land, a house, a piece of property, a debenture, or to deposit money in foreign banks and financial organisations abroad.
The warning stated that no citizen shall engage in making this type of payment in a foreign country, except under the provisions given by the bank.
The central bank recommended people to refrain from engaging in any work involving payments abroad unless it complied with the specified rules.
The notification warned that strong legal action would be taken against anyone who disobeyed the restrictions.
Nepal's central bank had placed a ban on the import of cars and other luxuries in April of last year, citing a liquidity crisis and declining foreign exchange reserves. While imposing this ban, the Government had assured its citizens that Nepal won’t witness economic crisis like Sri Lanka.
According to figures from the central bank, Nepal's overall foreign exchange reserves increased slightly, about 3%, from mid-July levels to reach USD 9.82 billion in mid-December, which can cover 8.7 months' worth of imports.
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