Investment Policy Monitor
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UNCTAD has been collecting information on changes in national foreign direct investment (FDI) policies on an annual basis since 1992. This collection has provided input to the analysis of global and regional investment policy trends in the World Investment Report, the quarterly Investment Policy Monitor (since 2009) and the UNCTAD-OECD Reports on G20 Measures.
In 2011, to further strengthen the quality of reporting, UNCTAD revised the methodology of monitoring investment policy measures. and revised the measures going back to 2000 accordingly.
The Investment Policy Monitor provides the international investment community with country-specific, up-to-date information about the latest developments in foreign investment policies.
Through its monitoring of investment policy changes, UNCTAD offers cutting-edge and innovative contributions to investment policy discourse, and contributes to preparing the ground for future policymaking in the interest of making foreign investment work for growth and development.
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Note: the policy measures are identified through a systematic review of government and business intelligence sources. Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.
Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.
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- Nepal - Enforces hedging regulation to minimize risk on foreign investment
Nepal
Enforces hedging regulation to minimize risk on foreign investment
10 Sep 2022On 10 September 2022, the Ministry of Finance enforced a new hedging regulation in a bid to attract more foreign direct investment. Publishing a notice in the Nepal Gazette, the Ministry introduced a provision that will help minimize the potential financial risk emanating from the fluctuation of the exchange rate with the US dollars. According to the new rule, foreign investors in infrastructure looking to repatriate capital after 7 or 12 years will be able to exchange the Nepali currency against the US dollars at the current exchange rate of around Rs 127 per dollar.
The new hedging facility will be available for investors in reservoir or semi-reservoir hydropower projects with at least 100 MW of capacity; 220 kV transmission lines in a stretch of 30 km or more; metro railways or monorail of at least 10 km; the construction of roads, flyover, underpass, signature-bridge, tunnel roads, express highways of at least 50 km and international or regional airports that are subjected to toll charges.
Likewise, health, agriculture, education, tourism, information technology, industrial infrastructure and urban development projects with investment of at least Rs 2 billion (about $15 million) will also be eligible for the hedging facility.
The Government will bear liability between 5 to 20% of the hedging risk, while the investors concerned will have to assume up to 35% of the premium amount of hedging.
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Type:
- Treatment and operation (Capital transfer and FOREX)
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Industry:
- Primary (Agriculture, forestry and fishing)
- Services (Electricity, gas, steam and air conditioning supply, Construction, Financial and insurance activities, Education, Human health activities)
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Sources:
- examsanjal, Hedging Fund Facility in Nepal. Hedge Fund Regulations in Nepal, https://www.examsanjal.com/2022/hedging-fund-facility-in-nepal-hedging-fund-regulations-nepal/, 10 Sep 2022
- myrepublica, Govt enforces hedging regulation to minimize risk on foreign investment emanating from exchange rate fluctuation, https://myrepublica.nagariknetwork.com/news/govt-enforces-hedging-regulation-to-minimize-risk-on-foreign-investment-emanating-from-exchange-rate-fluctuation/, 10 Sep 2022
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UNCTAD has been collecting information on changes in national foreign direct investment (FDI) policies on an annual basis since 1992. This collection has provided input to the analysis of global and regional investment policy trends in the World Investment Report, the quarterly Investment Policy Monitor (since 2009) and the UNCTAD-OECD Reports on G20 Measures.
In 2011, to further strengthen the quality of reporting, UNCTAD revised the methodology of monitoring investment policy measures. and revised the measures going back to 2000 accordingly.
The Investment Policy Monitor provides the international investment community with country-specific, up-to-date information about the latest developments in foreign investment policies.
Through its monitoring of investment policy changes, UNCTAD offers cutting-edge and innovative contributions to investment policy discourse, and contributes to preparing the ground for future policymaking in the interest of making foreign investment work for growth and development.
-
Note: the policy measures are identified through a systematic review of government and business intelligence sources. Measures are verified, to the fullest extent possible, by referencing government sources. The compilation of measures is not exhaustive.
Disclaimer: the boundaries and names shown and the designations used on this map do not imply official endorsement or acceptance by the United Nations.