Nepal may have currency note shortage

KATHMANDU, Nepal -- The suspension of Nepal's national bank governor may have an unexpected impact on the Himalayan kingdom's economy because of a currency bill shortage.

The Nepal Rastra Bank's plans to issue new 1,000-rupee bills have been put on hold with the suspension of Bijaya Nath Bhattarai, who is accused of financial irregularities during King Gyanendra's 14-month direct rule last year, the Press Trust of India reported Wednesday.

The bank warned the interim government, which is in the process of preparing for elections for a constituent assembly, it may face a currency note shortage if it doesn't make an alternative arrangement soon.

The elections are set for April but the new bills need to be readied soon,
bank officials said.

The constituent assembly will decide about declaring Nepal, the only Hindu kingdom, a republic after abolishing its 240-year-old monarchy.

Manmohan Shreshta, the bank's executive director, told PTI the currency bills need to be printed soon to avert a crisis.

The new bills will replace the watermark picture of King Gyanendra and his crown with that of the national flower rhododendron and the picture of Mount Everest, the world's tallest peak.

Copyright 2007 by United Press International.