Submit your Article

At a time when Nepal’s overall exports have declined as shown by the trade data of the current fiscal year, the exports of woolen carpets and large cardamom have surged significantly. While the country's overall exports declined by 24.49 percent in the 10 months of FY 2022/23, the exports of woolen carpet and cardamom have increased by 23.21 percent and 72.46 percent, respectively. The latest foreign trade data released by the Department of Customs (DoC) on Sunday shows Nepal exported woolen carpets worth Rs 9.49bn from mid-July, 2022 to mid-May, 2023. The carpet exports during the same period of the last fiscal year stood at Rs 7.70bn. The export of cardamom has hit an all-time high with the country exporting cardamom worth 7.28bn in the review period. According to DoC statistics, the United States is the largest market for Nepali woolen carpets. Nepal exported carpets worth Rs 5.87bn to the US in the current fiscal year. Germany and the United Kingdom are the second and third largest buyers of Nepali carpets. The carpet exports to Germany and the United Kingdom stood at Rs 739.4m and Rs 630m, respectively. However, Tenzing Sherpa, President of the Nepal Carpet Producers and Exporters Association said that the export of carpets has not increased as expected. “The government data shows the rise in carpet exports. It is due to the increased demand for Nepali carpets in the world market,” said Sherpa. According to Sherpa, there is a demand for branded and quality woolen carpets, especially for celebrities and high-profile people. "If the government supports the carpet manufacturers, the export of carpets can be increased by four times," he said. Carpet manufacturers say they are able to fulfill the increased demand in the international markets but the cost of production of carpets in Nepal is high which makes it difficult for Nepali carpets to compete with products of other countries. Currently, the government has exempted tax for wool that is imported from abroad. There is no such exemption for other raw materials. Also, carpets have to be woven by hand, which requires very good skills. However, such skilled workers are insufficient in the Nepali labor market. “If the government provides us custom exemptions to all the raw materials required for producing carpets, provides skills training for workers, and supports in market promotion, export of Nepali woolen carpets in the global market would rise significantly,” said Sherpa. High growth in cardamom exports The exports of cardamom have increased by a whopping 72.46 percent in FY 2022/23. Nepal has exported cardamom worth Rs 7.28 billion in the first 10 months of the current fiscal year compared to Rs 4.22bn during the same period of the last fiscal year. Cardamom, which is especially used in the production of spices, is mainly exported to India. In the current fiscal year, cardamom worth Rs 7.26bn was exported to the southern neighbor. According to Nirmal Bhattarai, Chairman of the Large Cardamom Entrepreneurs Association of Nepal, the exports of cardamom have increased due to the surge in production in the country. Cardamom is produced especially in Nepal, India, and Bhutan. While cardamom production in India and Bhutan has decreased this year, in Nepal, its production has increased by 50 percent this year. “This has helped us to export more cardamom this year,” said Bhattarai. According to Bhattarai, the price of cardamom decreased in May and June of last year. “Traders did not sell cardamom during that time,” said Bhattarai, “The price came back to normal from the beginning of the current year, following which traders sold their stocks of cardamom.” With the decline in production in India and Bhutan, the demand for Nepali cardamom has increased, resulting in the surge of its exports from Nepal. Cardamom is cultivated on 18,000 hectares of land in Nepal. Large cardamom is cultivated predominantly in four districts of eastern Nepal—Taplejung, Panchthar, Ilam, and Sankhuwasabha.

Around 500 people have successfully climbed the world’s highest peak. During this spring season, 500 mountaineers and guides have scaled Mt Everest, according to the Department of Tourism. Around 500 people have climbed Mt Everest as of today. A total of 478 mountaineers have obtained expedition permits to climb Mt Everest in this spring season. The 500 also includes the Sherpa guides of different expedition teams, Director General of the Department Hom Prasad Luintel. This year's spring climbing started on May 13. This is the first time in history that 478 permits were issued to climb Mt Everest in the spring season. This includes 103 women and 376 men from 47 mountaineering teams, the Department said.

The Nepal Stock Exchange (NEPSE) gained 8.10 points to close at 1,891.31 points on Monday. Similarly, the sensitive index surged by 0.54 points to close at 358. 88 points. A total of 3,495,752-unit shares of 272 companies were traded for Rs 1. 27 billion. Meanwhile, Aatmanirbhar Laghubitta Bittiya Sanstha Limited was the top gainer today, with its price surging by 10. 00 percent. Similarly, GreenLife Hydropower Limited was the top loser as its price fell by 10.00 percent. At the end of the day, total market capitalization stood at Rs 7. 37 trillion.

Nepal Rastra Bank (NRB) has recently established a separate division within the Payment Systems Department with an aim to introduce digital currency in the country in the future. NRB has planned to introduce the Central Bank Digital Currency (CBDC) in pilot testing within the next one and a half years. The creation of the division is based on a concept paper on CBDC which the central bank published in Aug 2022. The central bank plans to move ahead based on the suggestions received on the concept paper by developing mechanisms and infrastructure to launch digital currency in the country. The NRB study suggested creating a separate structure and team to advance the CBDC project. Guru Prasad Paudel, Head of NRB’s Payment Systems Department, said the digital currency will be introduced in pilot testing in the next one-and-a-half years. “We will manage the necessary human resources required for digital currency. Once the necessary infrastructure is ready, we will start the tests,” he said. The central bank had initiated the study on digital currency as per the Monetary Policy of FY 2021/22 which states that a feasibility study for digital currency in Nepal will be conducted in the context of ongoing worldwide studies regarding the usage and feasibility of electronic currency. With the majority of central banks around the world exploring central bank digital currency (CBDC) options, the NRB also formed a steering committee headed by Deputy Governor Bam Bahadur Mishra to make necessary recommendations regarding digital currency. A CBDC is the digital form of a country's fiat currency. Like the fiat currency, CBDC is also issued by the nation's monetary authority. It is considered a form of legal tender that can be used for the exchange of goods and services. Of late, many countries are exploring how CBDCs may affect their economies, financial networks, and stability as CBDCs have the potential to reshape the payments industry. A 2021 Bank for International Settlements (BIS) survey of central banks found that 86 percent are actively researching the potential for CBDCs, 60 percent were experimenting with the technology and 14 percent were deploying pilot projects. According to international media reports, China launched e-CNY in 2020, Hong Kong Monetary Authority (HKMA) commenced e-HKD pilot program in 2023 and the Reserve Bank of Australia commenced a retail CBDC pilot in 2023, with a report due mid-2023. In China, the People’s Bank of China (PBOC), the Chinese central bank, started the pilot project on e-CNY in four major cities, namely Shenzhen, Suzhou, Xiongan, and Chengdu. Since the start of the pilot project, the value of transactions made using e-CNY has surpassed 100 billion yuan, and PBOC has expanded the pilot to include the entirety of four provinces - Guangdong, Jiangsu, Hebei, and Sichuan. By the end of 2022, PBOC reported that there were 13.61 billion yuan of e-CNY in circulation, representing 0.15 percent of the total volume of yuan in circulation. While China is yet to announce the date for the nationwide launch of e-CNY, however, companies including Alibaba and Tencent have integrated e-CNY into their systems as a payment option. In Hong Kong, the HKMA on 18 May 2023, announced the commencement of the e-HKD pilot program, with 16 firms selected to participate. While the United States Federal Reserve has made no decisions on whether to pursue a US CBDC, however, it has been exploring the potential benefits and risks of CBDCs. The Federal Reserve in January 2022, released a discussion paper examining the pros and cons of a potential retail CBDC. The Central Bank of the Bahamas was the first central bank to introduce a full-fledged CBDC in October 2020- the Sand Dollar. The Eastern Caribbean Currency Union, consisting of Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, Saint Lucia, and St. Vincent and the Grenadines, launched its digital currency in March 2021.