Liquidity Crisis in Nepal after Lockdown
Nepal is currently facing a severe liquidity crisis due to a shortage of cash flow in the country's banking system. This crisis has been building for some time and has recently come to a head, causing widespread concern among the country's citizens and businesses. At the heart of the liquidity crisis is the shortage of Indian currency in Nepal, which has been exacerbated by recent restrictions on the amount of Indian currency that can be exchanged and withdrawn by Nepalese citizens. India is Nepal's main trading partner, and the country heavily relies on Indian currency for both trade and everyday transactions. The liquidity crisis has had a significant impact on Nepalese businesses, particularly those that rely on imports and exports. The shortage of Indian currency has made it difficult for businesses to pay their suppliers, leading to a decline in imports and a reduction in economic activity. This, in turn, has led to a shortage of goods in th...