Hundreds of soldiers patrolled the streets of the Nepalese capital of Kathmandu today after the government lifted a curfew.
The government said security had improved and that the clampdown in Kathmandu was no longer necessary following anti-Muslim riots erupted last week in Nepal's capital.
A shoot-on-sight curfew was imposed last Wednesday after news that 12 Nepalese hostages had been executed by Iraqi militants unleashed riots and protests that left two dead.
Thousands of people ransacked and set Kathmandu's only mosque on fire, attacked Middle Eastern airline offices and threw stones at overseas recruitment agencies. Similar riots broke out in other major cities, causing an estimated €20 million in damage.
Schools and government offices were closed yesterday for a public holiday marking the birth of Hindu god Krishna.
The 12 Nepalese workers disappeared soon after entering Iraq from Jordan on August 19th.
Nepal, which has no troops in Iraq, has banned its citizens from taking jobs there because of security concerns. However, an estimated 17,000 Nepalese are believed to be working in Iraq - many as armed security guards for foreign contractors.