The government is considering allowing non-resident Nepalese to open bank accounts in foreign currencies.
In an interview with the Financial Times, Finance Minister Janardan Sharma stated that the government is considering enabling non-resident Nepalese (NRN) to open USD bank accounts within the country.
When speaking at a program held by the Nepal Rastra Bank on Tuesday, Minister Sharma stated that the government is currently in discussions with stakeholders about implementing the policy, which will also help to keep the country’s foreign currency reserves in tact. Nepal is currently under pressure to maintain its foreign currency reserves as a result of the worsening balance of payments situation there. “There is a discussion about making it easier for NRNs to deposit their money and to repatriate the interest revenues from their deposited sums,” he explained.
Sharma also expressed his dissatisfaction with the continuing discussions of allowing bitcoin transactions to take place within the country. “First and foremost, it is necessary to completely transition financial transactions to a digitalized system, and only after that will it be possible to enforce the digital currency mechanism,” he continued.
According to him, the government is also in discussions with the various stakeholders to make it easier for foreign employees to deposit their earnings into the Employees Provident Fund. In addition, Sharma explained, “the provision might also examine the hundi transaction, which is extensively used by migrant workers to pay their money back home.”