• Tuesday, February 07, 2023

ASIA

Nepal’s central bank bans citizens from investing in foreign countries

a pile of Nepal Rupee bank note . the currency used in Nepal.

By: Chandrashekar Bhat

Nepal’s central bank on Friday barred Nepalese nationals from investing in foreign countries, warning that such a move would invite strict punishment.

According to a notice issued by Nepal Rastra Bank, the country’s central bank, Nepalese nationals are not allowed to purchase land, house, property, debenture and deposit money in foreign banks and financial institutions abroad.

Except under the provision specifically mentioned by the bank, no one shall engage in making this kind of payment in a foreign country, the notice said.

The central bank urged citizens not to do any work related to payment abroad, except as per the prescribed rules.

The notice also warned that if anyone is violating the rules, strict action will be taken under the prevailing laws.

In April last year, Nepal’s central bank announced the ban on the import of vehicles and other luxury items citing liquidity crunch and declining foreign exchange reserves, despite government assurances that the economy will not go into a tailspin like Sri Lanka.

Nepal’s total foreign exchange reserves rose marginally, by about 3 per cent in mid-December to touch $9.82 billion – enough to cover 8.7 months of imports — from mid-July levels, according to the central bank data.

(PTI)

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