Foreign exchange limits increased for imports and employment

KATHMANDU: Nepal Rastra Bank has implemented a new regulation for foreign exchange. According to the central bank’s foreign exchange management, the previous rule allowing currency exchange for foreign travel only twice per fiscal year has been abolished. Now, travelers can exchange up to USD 2,500 an unlimited number of times per year.

Under the new regulation, the limit for goods imports has been increased from USD 60,000 to USD 100,000. Additionally, for business purposes, the limit for gold and silver imports has been set at USD 300,000, and the limit for silver imports specifically for business purposes has been removed. Similarly, the exchange facility for foreign employment has been increased from USD 500 to USD 1,000.

The central bank increased the exchange limit due to sufficient foreign exchange reserves. Currently, Nepal Rastra Bank’s reserves stand at NPR 147.2 billion, which is sufficient to cover 15.1 months of goods imports and 12.6 months of goods and services imports.

Approximately two years ago, when the foreign exchange reserve adequacy fell to 6.7 months, the central bank had tightened currency exchange. Recently, the management department issued a circular revising the exchange limit for foreign travel.