September 29, 2021 | Investopaper
Nepal Rastra Bank has tightened the exchange of dollars. Accusing the banks of assisting in ‘asset laundering’ by exchanging dollars, the central bank has instructed the banks not to exchange more than 200 dollars in cash. At present, the limit of $1,500 has been formally maintained and verbal instructions have been given not to give more than 200 dollars.
NRB has enforced a provision to provide $200 per passport to those going for foreign employment and $1500 to those going for tourist visas.
Foreign exchange reserves have been declining in recent days. The trade deficit has widened due to high imports and the balance of payments has turned negative. That is why the NRB has tried to tighten the cash payments.