Currency Convertibility

Convertibility is usually discussed in two parts:

• Current account convertibility: freedom to convert currency for current transactions, such as imports and exports of goods and services, travel, education, medical treatment, interest, dividends and remittances. Countries that accept Article VIII of the IMF Articles of Agreement commit not to restrict such payments.
• Capital account convertibility: freedom to convert currency for capital transactions, such as residents investing abroad, foreigners investing in domestic assets, and cross-border borrowing and lending.

Full capital account convertibility can attract investment but also exposes an economy to volatile capital flows and sudden outflows, so many developing countries open it gradually.

Nepal accepted IMF Article VIII obligations in the 1990s and has current account convertibility, with foreign exchange for permitted current transactions provided through banks under NRB's directives, subject to documentation and limits for certain purposes. The capital account remains largely controlled: residents generally need approval to invest abroad, and foreign investment and external borrowing require approvals under the relevant laws and NRB rules. Full convertibility is a frequently discussed policy topic.

परिवर्त्यता दुई भागमा छलफल गरिन्छ:

• चालु खाता परिवर्त्यता: वस्तु तथा सेवा आयात-निर्यात, भ्रमण, अध्ययन, उपचार, ब्याज, लाभांश र विप्रेषण जस्ता चालु कारोबारका लागि मुद्रा साट्ने स्वतन्त्रता। IMF को धारा VIII स्वीकार गर्ने देशले यस्ता भुक्तानीमा प्रतिबन्ध नलगाउने प्रतिबद्धता गर्छन्।
• पुँजी खाता परिवर्त्यता: स्वदेशीले विदेशमा लगानी, विदेशीले स्वदेशमा लगानी र सीमापार ऋण जस्ता पुँजीगत कारोबारका लागि स्वतन्त्रता।

पूर्ण पुँजी खाता परिवर्त्यताले लगानी आकर्षित गर्छ तर अस्थिर पुँजी प्रवाहको जोखिम ल्याउँछ। नेपालले १९९० को दशकमा IMF धारा VIII स्वीकार गरी चालु खाता परिवर्त्यता अपनाएको छ; पुँजी खाता अझै धेरै हदसम्म नियन्त्रित छ।