The Federation of Nepalese Chamber of Commerce and Supplies (FNCCI) has welcomed the Monetary Policy for the fiscal year 2007/08 unveiled by the Nepal Rastra Bank (NRB) for incorporating many recommendations it had earlier forwarded.

“The commitments expressed in the monetary policy must be fully implemented,” the Federation has stated.

It has welcomed the policy for incorporating its recommendations such as enforcing national micro finance policy; bill of exchange act; allowing investment in foreign country; acceptance of document against payment mode; vow to review the fixed exchange rate of Nepali currency vis-à-vis Indian currency; and commitment to enforce various other policies. The FNCCI has said that these provisions, if implemented, would go a long way in strengthening national economy.

The FNCCI, however, has also pointed out at some provisions in the policy, which it has termed as negative. It has expressed surprise over the silence of the policy regarding continued appreciation of Nepali currency against US dollar. It has warned that this will discourage export and remittance income affecting balance of payment. It has also expressed worries that there could be further pressure on Indian currency reserve since there is a capital flight to India.