Group Members

: Group “H”

• Ashmita Rawal
• Srijana Pandit
• Dibika Bhandari
• Sandesh Ghimire
• Kritika Mainali
Presentation on :“Role of Foreign Exchange
Department of Nepal Rastra Bank”
 CONTENT
• Introduction
• Objectives
• Methodology
• Result & findings
• Conclusions
• References
• Appendix
 INTRODUCTION
Nepal Rastra Bank:
• Established as central bank of
Nepal
• Established in 1956,april 23
under NRB Act 1955
• Current Governor is Dr.
Chiranjibi Nepal
• Expedient to establish to
maintain stability of price and
balance of payment.
Foreign Exchange Department(FED)

• The department which is responsible for dealing with and managing the
purchase and sales of foreign currencies and is a highly specialized business .
• All banks, private or state owned, have FED that work closely with the
foreign exchange markets, trading with other financial centers as per the
license issued by NRB.
 OBJECTIVES

Major Specific
• To find out the roles of • To identify the exchange
foreign exchange rate policy
department of NRB. • To know about the
challenges faced by
foreign exchange
department and general
people.
 METHODOLOGY
Research Design Working Area

Descriptive Nepal
Method Rastra
Bank

Survey Foreign
Exchange
Department

Interview Mr. Ramesh

(Qualitative Acharya
Approach) ( Acting
Director)
 Secondary Method:
• Articles
• NRB Act 2058
• Foreign Exchange Act

 Data Analysis Method:

• Transcribe
 Formulation of Policies

Fa erna
Se ts in
rs
ffe tm ng

Int
cil
cto
Di es aki

ita tion
re en
Inv M

te al T
nt

rad
Roles & Responsibilities

e
of FED
Pr ig

nd t
Fo nve
ov n D en

a
re stm

h en
isi ir t

t
I

ow opm
on ec

r
G el
of t

Facilitate students, v
D e
tourists and citizen
of our country
 Objectives of FED

Internal Stability External stability

• Price stability • Exchange rate
• Investment of foreign stability
currency received by • Maintain Balance of
government of Nepal to Payment
gain higher return.
 Policies of FED
• Exchange currency of 21 countries only.
• Amount an individual can carry while travelling
 Passport Holder: 1500$
 Students: Living expenses and other expenses demanded
by university with necessary documents.
• Provisions relating to license and remittance for various
sectors.
• FED maintain peg exchange rate with India and flexible
exchange rate with other countries.
 Punishment and Offences
• NRB has right to take corrective actions in
case of unauthorized work related to foreign
exchange.
• Punishment and action shall be taken as per
Foreign Exchange Act , 2019, section 17.
 CHALLENGES

Foreign Exchange General People

Department • Lack of awareness
• Lack of diversifying
investment
• Illegal activities
• Reserve less than
required
 Strategy to Cope up with Challenges

For NRB For general people

• Proper regulation of • Formulating circular
licensed institution • Training and seminar in
• Controlling illegal various district
activities • Publishing information in
• Public awareness daily newspaper
• Increasing Reserve
 CONCLUSION
From the research conducted at NRB we concluded that:
The major roles and responsibility of FED is to maintain
price stability and BOP.
 FED adopted peg exchange rate with India and flexible
exchange rate with other countries .
 FED facilitates tourist by keeping exchange rate counter
in various places.
 FED invest foreign currency in various sectors to
generate higher return.
 FED is facing problem of unawareness in people, illegal
activities(like hundi) and not being able to diversify
investment.
 FED is conducting various training, seminars and have
issued circular to aware general people.
 REFERENCES
 Nepal Rastra Bank Act 2058
https://pucl.files.wordpress.c
om › 2011/11
 Foreign Exchange Act, 2019
Ramesh Acharya, Acting
Director, Foreign Exchange
Department, NRB
 www.nrb.org.np

Acting Director (Mr. Ramesh Acharya)

 APPENDIX
Questionnaire:

• When and how was FED Established in Nepal?

•  Objective of FED?
•  Plan and strategy made in order to achieve it's Transaction of NRB?
•  Does any policy made by World Bank effect FED and it's
Transaction of NRB?
•  Only NRB has authority to conduct Foreign exchange transaction or
other sector can also conduct such transaction? If YES, What
procedure they should fallow to obtain license to conduct such
transaction?
• Role and responsibilities of FED?
• What are the offence made regarding foreign exchange
transaction policy and what sort of punishment is made for
those offence?
•  Can FED of NRB print unlimited currency as per it's desire
in order to make Nepal rich?
•  Why Nepalese one rupee is not equal to foreign currency
of other Country?
•  Why the exchange rate between India and Nepal is fixed?
•  Pace of change in foreign exchange rate?
•  Which country currency is restricted for exchange and
which is allowed?
•  How does FED of NRB help for growth and development of
Nation?
•  Challenges faced by FED of NRB and general people?
•  Response and strategy made by FED of NRB to cope up
with such Challenges?
 Thankful to
Mr. Ramesh Acharya