Kathmandu – Nepal Rastra Bank has revised and made new provisions related to foreign exchange management through the monetary policy for the upcoming fiscal year 082/83.

The monetary policy states that Nepali citizens traveling to countries other than India are currently provided with an exchange facility of up to $2,500 per visit, but this exchange facility will be increased to $3,000.

Similarly, the Rastra Bank has also stated that the currencies of countries where foreign exchange transactions are increasing, including Bangladesh and Sri Lanka, will be added to the list of convertible foreign currencies.

The monetary policy states that the exchange rate used in remittance transactions will be reviewed as needed and policy provisions will be made regarding interbank transactions in convertible foreign currencies. The Rastra Bank has also stated that arrangements will be made to manage foreign exchange risks through commercial banks to attract foreign investment.

The policy of amending the ‘Nepal Rastra Bank Foreign Investment and Foreign Debt Management Regulations, 2078’ has been adopted to facilitate the improvement of the economic and business environment and investment growth. The monetary policy also includes a provision to review the limit of cash foreign currency subject to customs self-declaration and to facilitate the provision of submitting details of foreign exchange held abroad in the name of Nepali citizens or institutions.

The monetary policy also mentions that the existing provisions related to gold import and sale-distribution will be reviewed. Similarly, in the context of the increasing contribution of remittance companies to the economy, it is stated that a provision will be made to classify such companies on the basis of capital and turnover.