Nepal Rastra Bank (NRB) has relaxed its foreign exchange regulations as the country’s reserves have reached a comfortable level. On Wednesday, NRB issued a revised Unified Circular 2080, increasing the limits on foreign currency exchange for various purposes, including overseas business, medical treatment, and education.
Previously, Nepali citizens could access up to USD 10,000 to cover medical treatment or the purchase of health equipment abroad. This limit has now been increased to USD 15,000 for those seeking healthcare services outside Nepal.
Similarly, for educational expenses at foreign universities or their affiliated institutions, including tuition fees, affiliations, and examination fees, the limit has been raised from USD 12,000 to USD 25,000.
For businesses needing to urgently procure parts for airplanes, telecommunications, or medical equipment from foreign suppliers, the limit has been increased from USD 10,000 to USD 100,000, provided that the foreign seller extends credit.
Last year, NRB had increased the foreign exchange facility for Nepali citizens traveling abroad, raising the limit from USD 1,500 to USD 2,500.
In addition to raising these limits, the revised Unified Circular 2080 extends deadlines for submitting original documents for importers. Now, importers using foreign currency for purchases abroad can submit the original documents within 60 days, compared to the previous 45-day deadline. Initially, a copy of the document can be provided, followed by the original document within the 60-day period from the issuance of the foreign currency certificate.
Furthermore, the timeframe for importing goods after receiving foreign currency has been extended from 90 days to 120 days, providing more flexibility for businesses making international purchases.
The NRB’s decision comes just a day after it was reported that Nepal’s foreign exchange reserves have reached an all-time high. As of mid-September, the country held USD 16.4 billion (equivalent to Rs 21.52 billion) in foreign currency reserves, enough to cover 16.8 months of goods imports and 13.7 months of goods and services imports.