Foreign currency deposits drop in first two months of current fiscal

KATHMANDU: Foreign currency deposits in Nepali commercial banks have declined by more than Rs 7.78 billion in the first two months of the current fiscal year. Bankers have said that the coronavirus pandemic also affected foreign currency deposits.

According to Nepal Bankers’ Association, such deposits in 14 out of the 27 banks have declined in the two months from mid-July to mid-September. The association’s data shows that Nepali banks had foreign currency deposits of Rs 114.40 billion till last mid-July which has dropped to Rs 106.61 billion by mid-August.

Any Nepali or foreign national who earns their salaries and payments in convertible foreign currency as prescribed by Nepal Rastra Bank (NRB) can keep deposits in foreign currency in Nepal. Likewise, Nepalis who earn foreign exchange by working or doing business in any foreign country can also keep foreign currency deposits in commercial banks of Nepal.

NRB has facilitated Nepali citizens working in international associations, institutions or embassies to open bank accounts in foreign currency. However, bankers say that foreign currency deposits in Nepali banks have declined due to the impact of the coronavirus on international payments.

Fiscal Nepal |
Tuesday October 13, 2020, 03:04:55 PM |

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