NRB turns down hoteliers proposal to facilitate them with Foreign Exchange right

27th Apr, 2017 | Tourism Mail Crew

KATHMANDU, April 27: Nepal Rastra Bank, Central bank of Nepal has turned down hoteliers proposal to allow them with flexibility on exchanging foreign currencies to foreigners. The hoteliers has lodged their complaint claiming the recent tightening of foreign currency exchange policy has 'invited serious problems toward providing service to foreign guests'.

[caption id="attachment_5288" align="alignnone" width="919"] Photo : Hotel Association of Nepal[/caption]

While Nepal Rastra Bank (NRB) officials say that hoteliers have been licensed only to receive payments in foreign currency, hoteliers contend that they should be allowed to provide foreign currency exchange facility to foreign tourists.

Speaking at an interaction organized by Hotel Association Nepal (HAN) in Kathmandu on Tuesday, leaders of hotels and hospitality industry said that tourists have to suffer if they are denied foreign currency exchange facility by hotels.

“We have been facing problems due to policies introduced by the NRB. Recently, the central bank issued a policy that says hotels cannot provide foreign currency exchange facility. We have been providing the facility for the past many years. It was never a subject of issue till date,” Sunil Sakya, treasurer of HAN, said.

“With the new rule coming into effect, we have to tell foreign tourists, who ask for foreign currency exchange to make payment for cab or other services, that we cannot provide exchange facility because we are not allowed to do so by our central bank."

He also urged the central bank to allow hotels to buy foreign currency from their guests. “As we have been meeting regulatory compliance and adhering to reporting standards, hotels having foreign exchange license should be allowed to provide foreign exchange service,” he added.

The central bank has issued foreign exchange license to 135 hotels in Kathmandu Valley and 31 outside the valley.

NRB officials, however, say that hotels are bound by laws to accept only payment in foreign currency.

“The central bank has not allowed them to sell foreign currencies to foreigners. You can only receive payment in foreign currency for your services,” Chintamani Shiwakoti, a deputy governor of the NRB, told hoteliers. “The central bank is intensifying monitoring to ensure that the license is not being misused.”

Similarly, Bhisma Raj Dhungana, the chief of Foreign Exchange Department of the NRB, asked the hoteliers not to receive payments in Nepali currency. “Hotels have been found accepting Nepali currency as payment for their services from foreigners. That is illegal. They should receive payments in foreign currency only,” he added.

According to Dhungana, hotels can accept payment in local currency only if tourists present receipts of foreign currency exchange.