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Bhutan will ban the import of all autos besides utility autos, heavy earthmoving machines and agriculture equipment to avoid wasting dwindling international alternate reserves, the federal government mentioned in a discover seen by Reuters on Friday.
Nestled between China and India, the nation of fewer than 800,000 folks is grappling with the consequences of hovering oil and grain costs attributable to the struggle in Ukraine in addition to with the continued affect of the pandemic, together with a strict zero-Covid coverage that has barred international vacationers for the previous two years.
International alternate reserves had declined to $970 million on the finish of December, 2021, from $1.46 billion in April 2021, in accordance with knowledge launched final month by the Royal Financial Authority of Bhutan.
The ministry of finance mentioned in a notification that the import of utility autos costing lower than 1.5 million ngultrums ($20,000) can be allowed and people for the use and promotion of tourism can be exempted.
“The moratorium is applied to make sure satisfactory international foreign money reserves for sustaining macroeconomic stability,” it mentioned.
The day by day Kuensel newspaper mentioned Bhutan imported greater than 8,000 autos within the yr to June and that this was one of many primary contributing components to the depletion of reserves.
Bhutan is remitted by its structure to keep up reserves to cowl a minimum of 12 months of imports.
The federal government will assessment and amend the moratorium which went into impact on Friday in six months relying on the international foreign money reserve place, it mentioned.
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