The central bank is planning to allow banks to trade in 5 more currencies freely further liberalising the foreign exchange regime.
"Nepal Rastra Bank is soon issuing a directive permitting banks to freely trade another 5 currencies," according to a source at the central bank. "The banks will also be allowed to sell Swedish kroner, Danish kroner, Hong Kong dollar, Kuwaiti dinar and Bahrain dinar."
Currently, banks are not allowed too sale but only buy these currencies.
The banks will be allowed to trade 5 more companies freely within the next three weeks, according to the central bank sources.
The Monetary Policy for the current fiscal year 2015-16 had announced to let banks tarde freely more currencies.
The provision will make Nepali migrant easier while travelling to those countries. Currently Nepalis traveling in those countries need to carry US dollar.
According to the bankers, they cannot open nostro accounts in currencies, whose selling rates have not been fixed. A nostro account is an account held by a bank in a foreign currency in another bank.
Likewise, customers also cannot open accounts in these currencies. But the new provision will simplify things for both banks and customers and business deals would become easier.
Currently, US dollar, Euro, British pound, Swiss franc, Australian dollar, Canadian dollar, Singapore dollar and Japanese yen, have been traded freely. Likewise, in recent years the central bank has added Chinese yuan, Qatari rial, Thai baht, Saudi Arabian riyal, UAE dirham, Malaysian ringgit and South Korean won in the freely tradable basket.
"Nepal Rastra Bank is soon issuing a directive permitting banks to freely trade another 5 currencies," according to a source at the central bank. "The banks will also be allowed to sell Swedish kroner, Danish kroner, Hong Kong dollar, Kuwaiti dinar and Bahrain dinar."
Currently, banks are not allowed too sale but only buy these currencies.
The banks will be allowed to trade 5 more companies freely within the next three weeks, according to the central bank sources.
The Monetary Policy for the current fiscal year 2015-16 had announced to let banks tarde freely more currencies.
The provision will make Nepali migrant easier while travelling to those countries. Currently Nepalis traveling in those countries need to carry US dollar.
According to the bankers, they cannot open nostro accounts in currencies, whose selling rates have not been fixed. A nostro account is an account held by a bank in a foreign currency in another bank.
Likewise, customers also cannot open accounts in these currencies. But the new provision will simplify things for both banks and customers and business deals would become easier.
Currently, US dollar, Euro, British pound, Swiss franc, Australian dollar, Canadian dollar, Singapore dollar and Japanese yen, have been traded freely. Likewise, in recent years the central bank has added Chinese yuan, Qatari rial, Thai baht, Saudi Arabian riyal, UAE dirham, Malaysian ringgit and South Korean won in the freely tradable basket.
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