KATHMANDU, Dec 29: Nepal Rastra Bank (NRB) has revised its foreign exchange regulations on silver imports, easing restrictions for importers while tightening compliance requirements for exporters. The latest move comes amid a sharp rise in silver prices in recent weeks, which surpassed $75 per ounce on Friday for the first time. According to AFP, both precious and industrial metals hit unprecedented highs at year's end, driven by economic and geopolitical uncertainty.
Meanwhile, the central bank of Nepal amended the Unified Circular on Sunday, increasing the monthly foreign exchange ceiling for industries importing silver for industrial use to US $2 million. Previously, such industries were eligible for foreign exchange facilities of up to US $500,000 or its equivalent in other convertible currencies.
The revised provision applies to industries that import silver as a raw material for producing jewelry, artistic items, and utensils for their own use.
NRB eases foreign exchange rules, gold and silver importers all...
NRB has also raised the foreign exchange limit for silver traders fourfold to US $400,000 from the existing ceiling of US $100,000 or its equivalent in other convertible foreign currencies.
Kiran Pandit, executive director of NRB’s Foreign Exchange Management Department, said the central bank adopted the flexible policy mainly to reduce costs for importers. “If industries and traders are forced to import silver multiple times, they face higher costs due to price volatility and repeated foreign exchange transactions,” he said.
According to records maintained by the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA), the price of silver reached a record high of Rs 4,835 per tola on Sunday, marking a 60 percent increase over the past one and a half months. On November 9, silver was traded at Rs 3,015 per tola.
While easing import rules, the central bank has tightened foreign exchange provisions for exporters of silver jewelry, artistic items, and related products. Under the revised rules, exporters must submit proof of advance payment or a letter of credit confirming export or purchase orders from overseas buyers.
The NRB circular states that commercial banks providing foreign exchange facilities must verify, each time such facilities are granted, whether the silver imported under the pre-exchange facility has been exported in accordance with regulations. Banks are also required to obtain a self-declaration from silver traders confirming the absence of outstanding dues when receiving export payments, particularly if the import-related exchange facility was obtained from a different commercial bank.
