NRB to buy forex from agencies, changers

KATHMANDU, NOV 01 -

Nepal Rastra Bank ( NRB ) has allowed money transfer agencies and money changers to sell their foreign currency to the central bank too. Earlier, they could do so only to commercial banks.

An NRB official said the move followed complaints from money transfer agencies and money changers that they were not well treated by banks who saw them as competitors. “We have received complaints that banks did not exchange foreign currency brought by money transfer agencies and money changers leading to losses,” said the official.   

Banks compete with money transfer agencies in the remittance business although they also have a cooperative relationship. Remittance companies have to sell their foreign exchange to banks which gives banks an edge over them as they can quote lower rates to customers sending money.

The NRB said its banking office in Thapathali, Kathma-ndu and other branches elsewhere would accept foreign exchange from them.

Rajeej Karki, deputy manager at City Express Money Transfer, welcomed the central bank’s step saying that it gives money transfer agencies additional choices to sell their foreign exchange. “However, banks will continue to be the first option as NRB only buys foreign exchange from banks thrice a week,” he added.

Source: The Kathmandu Post