People’s Bank of China (PBoC) and Nepal Rastra Bank (NRB) have signed a currency swap deal enabling the settlement of both cross-border and ordinary trade. The two countries will use local currencies (Yuan and Nepal rupee) for the settlement.
Trade between the two countries has expanded in recent years with the northern neighbour becoming Nepal’s second largest trade partner. The two sides also signed a Memorandum of Understanding on anti-money laundering and anti-terrorism cooperation. During the first four months of the current fiscal year, bilateral trade amounted to Rs 33.62 billion.
China made the largest foreign investment commitment in the last fiscal year, according to the Department of Industry. Chinese investors pledged investments totaled to Rs 7.31 billion against India’s Rs 6.54 billion.