The central bank has finally allowed manpower agencies to obtain foreign exchange facility of up to $20,000 per year to cover expenses abroad.

Issuing a circular today, Nepal Rastra Bank (NRB)’s Foreign Exchange Management Department said it has allowed outsourcing agencies to obtain foreign exchange facility based on their business volume.

Agencies that recruit less than 100 Nepalis in foreign companies can avail foreign exchange facility of up to $10,000 per year. Likewise, larger firms that provide job placements for over 100 Nepalis abroad can obtain foreign exchange facility of up to $20,000 per year, says the circular.

The monetary policy for the current fiscal year had also announced that the provision on providing foreign exchange facility to manpower agencies would be introduced within this fiscal. “The provision on allowing manpower companies to use foreign currency deposited in their own foreign currency accounts or providing foreign exchange facility to firms that do not possess foreign currency accounts will be introduced this year. The amount should be used in covering necessary expenses abroad on the basis of number of workers sent,” it said.

Manpower agencies have long been demanding foreign exchange facility from banks so that they could use the money in scouting trips to countries where there are demand for Nepali workers.

A general Nepali citizen can currently avail foreign exchange facility of up to $2,500 per trip and a maximum of $6,000 per year. But dollar denominated account holders can obtain foreign exchange facility of up to $10,000 or equivalent convertible foreign currency per year from own foreign currency accounts.

From now on, NRB has also allowed manpower agencies to open dollar denominated accounts at commercial banks where they can deposit agency commission and fees received from abroad.

Published on: 7 January 2014 | The Himalayan Times