Treasury

Nepal Investment Bank operates a full- fledged Treasury Department within the consideration of the foreign exchange rules and regulations under the guidance of Nepal Rastra Bank (NRB) – central bank of Nepal. Being an active member of Foreign Exchange Dealers Association of Nepal (FEDAN), we work closely with all other commercial banks in the country. The Treasury Department offers basic services such as foreign currencies exchange (Buy/ Sell) and money market operations as well as specific services such as foreign currency forward contracts.


The treasury department located in Head Office, Durbar Marg is fully equipped with state of the art technology for day- to- day dealings. The department relies on the various internationally acknowledged softwares like Reuters and Newswire18 for real time information on the foreign currencies and news in the international market. We aspire to be the most active player in the financial market of the country. The major functions performed by our Treasury Department are as follows:

Updating the Exchange rate:

The department updates the exchange rates daily and as per the decisions of FEDAN. The exchange rates are based on the movements of INR against USD.

Check Foreign Currency Position:

The department maintains the foreign currency position as per the needs of the bank. Mostly, the currencies are squared off at day end to minimize the risks related to exchange rate fluctuations. Mostly spot transactions are carried out for sales/ purchase of the foreign currencies.

Fund Management:

Fund Management is one of the core functions of the Treasury department. The department carries out inter- bank transactions in the local market for fund management. As per the requirement of the bank, the department lends/ borrows to other commercial banks and few other financial institutions. It helps to manage the liquidity position of the bank and also fulfill the Cash Reserve Requirement (CRR) requirements of the Central bank.

 

Treasury Bills/ Government Bonds:

The department also invests in treasury bills and the government bonds issued by the central bank as per the liquidity position of the bank.

Inter- bank placements:

The department also does inter – bank placements with the domestic commercial banks, domestic development banks/finance companies and international banks like Citibank, ICICI Bank, Standard Chartered Bank, Axis Bank, and Mashreq Bank amongst others. Before placing any deposit with the international banks, the department carries out a thorough analysis of the concerned bank’s financial performance.

Forward Contracts:

As per the needs of the client, the department also executes Letter of Credit (LC) based as well as Non LC forward contracts, which helps our client hedge against foreign exchange risk. We charge premium of 30p for first 10 days and 25p for each next 10 days for USD forward contracts.

NRB reporting:

The department also prepares the reports as per the directions of the central bank. Weekly FOREX report, Daily Liquidity report, INR Reporting, Daily Inter Bank Report, Weekly CRR report and Weekly Foreign Currency Risk Report are the major reports prepared by the department.

Treasury Research:

The treasury department collaborates with in-house Research and Development (R&D) department to conduct Currency, Inflation, FOREX and other economic research.

 

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