KATHMANDU: Now, the commoners can visit the money changers nearyby their towns to exchange the gifted money received in the US dollars.

The new monetary policy announced today by the Nepal Rastra bank for the 2013/014 fiscal year has also taken liberal policy in US dollar exchange and transaction as well.

As per the new policy, an individual and organizations could exchange the foreign currencies worth equal to 10,000 US dollars.

The Monetary Policy made public at a press meet organized by the Bank here today is focused on the goal of the recent government budget to achieve 5.5 percent economic growth.

On the occasion, Governor Dr Yubaraj Khatiwada said caution was adopted in the monetary policy not to allow increase of trade deficit and to reduce the price hike.

The monetary policy has been made somewhat flexible as flexible economic policy is to be adopted to achieve higher economic growth rate, he said.

The policy is aimed at achieving targeted economic growth by flowing more loans in productive sectors including agriculture, energy and industry.

The monetary policy has bank interest rate at 8 percent and the compulsory cash ratio for banks and financial institutions is maintained at 5 percent for Class A , 4.5 percent for B and 4 percent for Class C.

Arrangement will be made for 20 percent loan flow in productive sector of the total loans including 12 percent in agriculture and energy until Asar, 2072 BS.

Arrangement will be made for providing zero percent interest rate for up to Rs. 2 million loans from NRB, while opening new branch by Class D micro finance in the districts having less access of micro finance.

KATHMANDU: The price of daily essentials in Nepal has increased by 11.3 per cent in the past eight months, said the Nepal Rastra Bank on Tuesday.

The NRB said that the index of food and beverage group increased by 11.3 per cent while non-food and services group rose by 9.3 per cent in mid-March, 2013.

According to the central bank, the CPI inflation increased by 10.2 percent in mid-March 2013 compared to 7.0 percent a year ago.

Similarly, government revenue grew by 23.2 percent to Rs. 177.97 billion and such revenue had risen by 17.4 percent to Rs. 144.47 billion in the corresponding period of the previous year. Of the total revenue mobilization, VAT revenue grew by 17.0 percent to Rs. 53.49 billion, said the Bank.

Revenue collection from imports led to the rise in overall VAT revenue whereas customs revenue rose by 39.7 percent to Rs. 36.46 billion. Likewise, income tax revenue ncreased by 32.4 percent to Rs. 36.73 billion during the review period.

Positive impact of reform in income tax administration and taxpayer education campaign launched recently accounted for such an increase in the income tax revenue during the review period, the macroeconomic situation report stated.

In the period while foreign cash loans amounted to Rs. 6.93 billion, foreign cash grants stood at Rs. 8.68 billion. Such receipts were Rs. 3.27 billion and Rs. 25.80 billion respectively in the corresponding period of the previous year.

A significant rise in imports, relatively lower growth in remittance and a fall in capital as well as current transfer led to a slower growth in net foreign assets of the monetary sector during the review period.

Domestic credit increased by 8.9 percent during eight months of 2012/13. It had increased by 3.4 percent in the corresponding period of the previous year. Reserve money decreased by 10.0 percent as against an increase of 14.1 percent in the corresponding period of the previous year. A decrease in Nepal Rastra Bank’s net claims on government coupled with a slower growth of net foreign assets caused a decrease in reserve money during the review period.

Deposit mobilization of banks and financial institutions increased by 6.8 percent (Rs. 68.62 billion) during eight months of 2012/13. Such deposit mobilization had increased by 11.4 percent (Rs. 94.07 billion) during the review period.

Total trade deficit during eight months of 2012/13 surged by 25.5 percent to Rs. 309.55 billion compared to an increase of 17.1 percent during the same period. Trade deficit with India increased by 28.8 percent during the review period compared to a growth of 11.5 percent in the same period of the previous year.

The overall BOP recorded a surplus of Rs. 11.78 billion during eight months of 2012/13 compared to a surplus of Rs. 81.09 billion during the same period of the previous year, the bank sources said.