Weakening Nepali currency affects import from China

Customers are likely to be compelled to buy costlier commodities during the upcoming festive season as the import of low-price goods, especially from China, has been badly hit by the weakening Nepali currency against US dollar. The entrepreneurs involved in import of low-cost goods from Tibet and other parts of China are in the ´wait and see´ mood. The Nepali customers, especially from the low-income groups, rely heavily on the Chinese goods during the great Hindu festival of Dashain. But, the warehouses in the Tibetan border town of Khasa are empty after the Nepali entrepreneurs chose to cut the order heavily fearing a huge loss in trading in the face of the weakening Nepali currency against dollar. The import from the northern neighbor has already been cut by two-thirds as the importers are still waiting for the Nepali currency to stabilize against dollar. “We do not feel confident to place order for the Chinese goods due to the growing value of the dollar. We don´t want to risk our investment,” said Chairman of Sindhupalchowk chapter of the Federation of Nepalese Chambers of Commerce and Industries Rajendra Kumar Shrestha. The exchange rate of the dollar against the Nepali currency was fixed at Rs 103.5 on Thursday, giving continuity to the bullish trend of the greenback since the last month. With the increasing value of the dollar, the Nepali currency is also loosing against the Yuan. The exchange rate of the Yuan against the Nepali rupee now stands at Rs 17, up from Rs 13 some two weeks ago. Nepalese traders usually import the Chinese products from the cities such as Guangzhou and Shanghai besides the Tibet, and it takes about three weeks for the products from the mainland China to arrive in Nepal once the order is placed. The major products imported for Dashain include garments, shoes, cosmetics and decorative goods.