Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal Rastra Bank has significantly expanded the foreign currency exchange limit for importers of precious metals, allowing up to USD 500,000 per transaction for industrial silver imports used in jewelry and handicraft production — a major relief for domestic bullion traders amid rising market demand.
In a circular issued on Sunday to all licensed foreign exchange institutions, the central bank stated that industries importing silver as raw material for making jewelry, artistic items, and utensils for their own industrial use will now be eligible for exchange facilities up to USD 500,000 or equivalent convertible foreign currency per transaction. Previously, the ceiling was USD 300,000.
Other general silver traders who are not classified as industrial manufacturers will be allowed up to USD 100,000 per import. However, the central bank has introduced separate provisions for exporters of silver jewelry and artistic goods, allowing them to obtain forex as per the value stated in confirmed export orders, advance payments or letters of credit — without being subject to the standard payment caps.
New Forex Rules for Silver & Gold Import: Key Points
Industrial Silver Import (Own Use): Exchange facility increased to USD 500,000 per transaction.
General Silver Importers: Limit set at USD 100,000 per transaction.
Export-Oriented Silver Traders: Allowed exchange according to confirmed orders or L/C documents, with no payment cap for such import tied directly to export.
Compliance Checks: Commercial banks must verify whether imported silver under previous permits has been exported or utilized properly before approving further forex.
Self-Declaration Requirement: Silver importers using different commercial banks must submit a declaration that no export proceeds remain unpaid if they took forex from other banks previously.
According to the Nepal Rastra Bank, the move seeks to address requests from bullion and handicraft industries that complained the previous limit was too low to meet large-scale purchase orders amid fluctuating global metal prices. The policy is also designed to streamline import-export monitoring and curb misuse of foreign currency exchange.
Officials say that while the new facility provides flexibility to genuine industrial users, the stricter compliance verification will help control illegal foreign currency outflow and prevent importers from manipulating the system through multiple banks.
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