Wednesday, July 20, 2011
Links for July 20, 2011
Prakash Ghimire dai has an article on Remittance---Kathmandu Post
The important part of this article is the "foreign employment bond". Most people in Nepal are not aware of this bond. Apparently, it was introduced by the Nepalese government to attract remittances with an aim to channel that money to productive use. However, what are those "channels"? The government has not made that clear, as far as I know. Also, Prakash dai writes that the failure of this bond is mainly because of near-sightedness of the government. How can the migrant workers invest their remittance income in such bonds if 78 percent barely earn enough to feed their families?
Nepal Rastra Bank is going to reduce the Cash Reserve Ratio---Kantipur
Currently, Nepal Rastra Bank requires a Cash Reserve Ratio (CRR) of 5.5 percent. It is proposing to reduce it to 5 percent. It estimates that this will open up Rs 3 billion of cash which will help ease the liquidity crisis. I think this is nonsense. Rs 3 billion cash infusion is not going to make even a minor dent in the liquidity market. I believe that NRB is simply pandering to the requests of some influential BFIs. This is very typical of NRB--it is simply pleasing its cronies.
Nepalese could get permission for USD500 prepaid card each year to carry out internet purchases---Republica
Well, it sounds nice and all, but it means I still cannot buy a new laptop over the internet. Because it costs more than USD500. And, my Debit cards from Nepalese Banks don't work for internet transactions.
Banks rush to Baglung to cash-in on remittance income---Republica
Yesterday, there was a news article about 190+ schools in Baglung getting girls' toilets built. And, now there's news of banks rushing to Baglung district to open branches to benefit from remittance income. Baglung is suddenly starting to look like a happening place. And, it has every reason to be. Baglung receives "tens of millions of rupees every day" in incoming remittance income. As a result, there are now several banks and finance companies including "14 commercial banks".
The important part of this article is the "foreign employment bond". Most people in Nepal are not aware of this bond. Apparently, it was introduced by the Nepalese government to attract remittances with an aim to channel that money to productive use. However, what are those "channels"? The government has not made that clear, as far as I know. Also, Prakash dai writes that the failure of this bond is mainly because of near-sightedness of the government. How can the migrant workers invest their remittance income in such bonds if 78 percent barely earn enough to feed their families?
Nepal Rastra Bank is going to reduce the Cash Reserve Ratio---Kantipur
Currently, Nepal Rastra Bank requires a Cash Reserve Ratio (CRR) of 5.5 percent. It is proposing to reduce it to 5 percent. It estimates that this will open up Rs 3 billion of cash which will help ease the liquidity crisis. I think this is nonsense. Rs 3 billion cash infusion is not going to make even a minor dent in the liquidity market. I believe that NRB is simply pandering to the requests of some influential BFIs. This is very typical of NRB--it is simply pleasing its cronies.
Nepalese could get permission for USD500 prepaid card each year to carry out internet purchases---Republica
Well, it sounds nice and all, but it means I still cannot buy a new laptop over the internet. Because it costs more than USD500. And, my Debit cards from Nepalese Banks don't work for internet transactions.
Banks rush to Baglung to cash-in on remittance income---Republica
Yesterday, there was a news article about 190+ schools in Baglung getting girls' toilets built. And, now there's news of banks rushing to Baglung district to open branches to benefit from remittance income. Baglung is suddenly starting to look like a happening place. And, it has every reason to be. Baglung receives "tens of millions of rupees every day" in incoming remittance income. As a result, there are now several banks and finance companies including "14 commercial banks".
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