Nepal Rastra Bank has raised the investment limit in Non-Deliverable Forwards (NDF) for banks and financial institutions to 25% of their core capital, up from the previous limit of 20%, as per the new Monetary Policy for FY 2082/83.
Nepal Rastra Bank has increased the allowable investment limit for banks and financial institutions in Non-Deliverable Forwards (NDF) in foreign currency.
According to the Monetary Policy for fiscal year 2082/83, published on Friday, financial institutions can now invest up to 25% of their core capital in NDFs during periods of high liquidity
Previously, the cap on such investments was set at 20% of core capital. The revised limit aims to provide more flexibility to financial institutions in managing foreign exchange positions and liquidity, especially under favorable market conditions.
This article was originally published on https://bajarkochirfar.com Translated with the help of AI and reviewed by our editorial team.
