The New Nation - Internet Edition

AFP, Kathmandu

Efforts in Nepal to phase out images of unpopular King Gyanendra from coins and banknotes have hit a snag with the release of new bills which still feature the monarch in the watermark. Banking officials in the impoverished Himalayan country, which is on the road to becoming a republic, admited that keeping down costs meant their increasingly republican sentiment could only go so far. "Watermarks are engraved at the very first stage of printing the notes," senior currency management official Manmohan Kumar Shrestha told AFP, explaining the paper was ordered before the monarchy fell out of favour. "We could not cancel the order as it would have resulted in a huge cost for the bank and the nation." Nepal's new 500 rupee (7.8 dollar) note, released on Sunday, have an image of two tigers on one side, and Mount Everest on the other. The image of a rhododendron has also been used in an atempt to obscure the watermark.