As the pressure on foreign currency reserves mounts, NRB further restricts providing foreign exchange to travelers
KATHMANDU, Dec 30: Amid increasing pressure on foreign currency reserves, Nepal Rastra Bank (NRB) has further tightened the noose on the availability of the foreign currencies on passport facility to the individuals visiting abroad.
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In the new development, NRB has enforced the limit for a traveler to draw foreign currencies equivalent to upto US $ 1,500 only, that too only twice a year. Amending a unified directive on Wednesday, the central bank has asked the banks and financial institutions (BFIs) to abide by the new restrictions and provide a traveler only with the prescribed amount of foreign currencies.
In addition, those going abroad will have to disclose the source while exchanging the foreign currencies from the BFIs. The Nepali passport holders should have to return the foreign currencies back to the BFIs concerned if the person does not go abroad within the one month of receiving the foreign exchange.
Due to falling inflow of remittance and ballooning imports, Nepal is facing pressure on its foreign currency reserves. The NRB records of the first four months of the current fiscal year show that the country is left with foreign currency reserves of USD 10.47 billion, which can finance the merchandise and services imports of 7.2 months.
The central bank, in order to check the outflow of foreign currencies, has already implemented a number of measures that include restriction on opening letter of credit accounts for the importers and direct availability of foreign exchange to the travelers and migrant workers. Last September, NRB asked the BFIs not to provide foreign currencies worth more than $ 200 in hard cash to their clients visiting abroad.
