Nepal’s central bank set to gain access to Chinese securities

Kathmandu, June 21 – Nepal Rastra Bank ( NRB ) and People’s Bank of China will be signing a memorandum of understanding (MoU) on Friday.
 

The MoU will open the door for Nepal’s central bank to invest upto 1.20 billion yuan ($ 200 million) in China’s central bank. It means the NRB will be able to invest upto Rs 18.80 billion as per the exchange rate fixed for Friday.

An NRB team had visited China in December 2012 to discuss establishing formal relations between the central banks of the two countries. The two sides had discussed the possibility of NRB investing in the Chinese securities and promoting payment through letters of credit.