Kathmandu, November 8
The Indian government needs to take responsibility for its own currency, and cannot just say it won’t accept notes from neighbouring countries, a former governor of Nepal’s central bank says.
A country cannot demonitise its legal tender being used in other countries unless it has gone bankrupt, says Former Nepal Rastra Bank governor Yubraj Khatiwada.
“The 500 and 1,000 rupee notes became legal in Nepal, after the Indian government said it was ok with it,” he said, adding that a country cannot demonitise its currency without giving due compensation to countries where it is used as legal tender.
“We can’t even imagine the US demonitising its dollar bills.”
The Indian currency is not just used in India, it is used in Bhutan, Singapore and Dubai among others, he added.
