Tuesday, Jan 22 2019 | Time 17:53 Hrs(IST)
  • Youth hit by stone allegedly pelted by CRPF jawan in Srinagar, hospitalised
  • Punjab govt takes charge of 20,000 km long link road
  • Youth sent to seven-day police custody for murdering gay partner
  • " BJP politically scared " : Derek
  • Sensex ends negative at 36,444 64 pts on profit booking
  • " BJP politically scared " : Derek
  • Reliance Nippon Life Asset Management Q3 net down by 14 80 pc
  • Pakistan PM condemns Afghan military base attack
  • Cristiano Ronaldo handed 23 months of suspended sentence, $21 6Mln fine for tax fraud
World Share

Nepal central bank provides exchange rate hedging facility for foreign investors

Kathmandu, July 11 (UNI) Nepal's central bank on Wednesday announced providing an exchange rate hedging facility for the foreign investors making investments in the country's infrastructure sector to help minimise their exchange rate risks.
Unveiling the "Monetary Policy" for the next fiscal year 2018-19 that begins in mid-July, Nepal Ratra Bank (NRB) Governor Chiranjeevi Nepal said that a separate account of foreign direct investment coming into the infrastructure sector would be created at the central bank and the investors would be provided with an exchange rate hedging facility based on their investment in the country.
"This facility is expected to help attract more FDI in the areas of big infrastructure projects, transmission lines, roads and other infrastructure projects," said the bank governor as saying.
"A working procedure will be prepared to implement this provision."
A senior official of NRB told Xinhua news agency that with this facility, it is expected that the FDI invested in Nepal would not be reduced due to exchange rate fluctuation.
The monetary policy has also made provision of allowing foreign investors to borrow loans from Nepali commercial banks in domestic currency against the collateral of foreign exchanges they have brought to Nepal to invest in certain industries and projects.
As the Nepali government is targeting to achieve economic growth of eight percent in the next fiscal year, the NRB has announced a number of policy measures to support the government's target including measures to attract more foreign investments.
Nepali central bank opened the door for Nepal's all types of banks and financial institutions to borrow loans from foreign banks and financial institutions in foreign currencies.
In March, the NRB had provided such facility only to commercial banks to address the liquidity crunch that Nepal's banking system had been facing for some months.
According to monetary policy, they can borrow up to 25 percent of their core capital from foreign banks and financial institutions.
The new monetary policy also reduced cash reserve ratio (CRR) required to be maintained by banks and financial institutions to four percent from the existing six percent for the commercial banks and five percent for the development banks while keeping the ratio unchanged at four percent for the finance companies.
"This will help generate certain amount of liquidity for banks and financial institutions," said the bank governor.
More News

US, Israel successfully tests Arrow-3 missile defence system

22 Jan 2019 | 5:05 PM

Jerusalem, Jan 22 (UNI) Israel and the United States on Tuesday carried out a successful test of the advanced anti-ballistic missile system "Arrow-3," said the Israeli Ministry of Defence.

 Sharesee more..

China slaps anti-dumping duties on chemical from India, Japan

22 Jan 2019 | 5:01 PM

Beijing, Jan 22 (UNI) China will impose from Wednesday anti-dumping duties on a chemical imported from India and Japan for making products used in medicine, pesticide and dyes.

 Sharesee more..

Zimbabwe president breaks off Europe trip over protests

22 Jan 2019 | 4:47 PM

Harare, Jan 22 (UNI) Following violent protests in his home country, Zimbabwean President Emmerson Mnangagwa has broken off a trip to Europe.

 Sharesee more..

US bans Filipinos for one year from non-immigrant temporary worker prog

22 Jan 2019 | 4:24 PM

Manila, Jan 22 (UNI) The United States has issued a one-year ban on Filipinos from its non-immigrant visa programmes citing “high overstay rates” and the “threat of human trafficking.

 Sharesee more..

Russian investigative Committee files criminal case against SBU agent pursuing scribe Vyshinsky's case

22 Jan 2019 | 4:09 PM

Moscow, Jan 22(UNI) The Russian investigative Committee has filed a criminal case against an investigator of Ukraine’s Security Service (SBU) for the illegal criminal prosecution of journalist Kirill Vyshinsky, Investigative Committee Spokesperson Svetlana Petrenko, TASS reported.

 Sharesee more..