Speaking in tongues
FROM ISSUE #110 (06 SEPT 2002 - 12 SEPT 2002) | TABLE OF CONTENTS
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Despite the agreement to grant convertibility to the Yuan two months ago, a language barrier prevents Nepali traders from dealing in the Chinese currency. Traders who travel between the two countries continue to depend on US dollars or the age-old barter system. Nepal's Bank of Kathmandu, the Nepal Bangladesh Bank and the Himalayan Bank all initiated the procedure to open Yuan accounts, but had to backtrack when their Chinese counterparts could not communicate in English. The 17 June agreement allows Nepali banks to buy Yuan from Chinese tourists coming to Nepal and deposit their earnings in accounts with the Central Bank of China. This facility is expected to increase the Chinese tourist inflow to Nepal and narrow the trade gap between the two countries. In the last fiscal year Nepal imported Chinese goods worth of Rs 5.29 billion, though exports only totalled Rs 525 million.