NRB eases forex access for importers

- POST REPORT, Kathmandu

Jul 23, 2015-

Nepal Rastra Bank (NRB) has increased the threshold of foreign currency that traders receive while importing goods from countries other than India through draft and TT.

According to the Monetary Policy 2015-16, the importers can get $40,000 each time they make payment through draft and TT. Earlier, it was $35,000. Amounts above the threshold can be received only for payments through letter of credit (LC). The traders had demanded the limit be hiked to $50,000.

Most of the payments for Chinese imports through Tatopani are made through TT and draft.

The policy has also increasied the threshold of Indian currency that exporters and importers receive to make payment to Indian transporters. The exporters will now get IRs 75,000 at a time to pay to Indian transporters while exporting/importing goods to India or to third countries through India. Earlier, the limit was IRs50,000.

The central bank will also revise the list of Indian goods that are imported by paying the US dollar. Also, Nepali companies that need to pay more than $50,000 to foreign consultants will have to take NRB’s permission to acquire foreign currency.

The monetary policy plans to take the trading of the US dollar and the NRB’s market intervention under an automated system.

It also talks about easing remittance flow from India.

Depending on the monthly turnover of commercial banks, NRB also plans to provide adequate stock of Indian currency to the banks for up to one week.

The central bank said the provision aims at helping the banks settle transactions made through commercial paper and credit cards.

To facilitate Indian Kailash Manasarovar pilgrims, domestic tour operators could receive up to $500 for the purpose of paying to Tibetan authorities. The facility will be provided on the basis of the Indian currency the visitors pay to the Nepali hotels.

As per the new monetary policy, foreign investors can bring in foreign currencies necessary to settle the registration fees and preparatory work through the banking channel.

 

Published: 24-07-2015 08:24

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