Nepal, Oct. 6 -- Nepal Rastra Bank (NRB) has relaxed the limits on investments that banks and financial institutions (BFIs) can make abroad.

Through an amendment to the 'Unified Circular-2025' issued by its Foreign Exchange Management Department, the central bank has granted BFIs additional flexibility to invest in low-risk financial instruments, including foreign government bonds.

Under the revised provisions, BFIs are permitted to invest up to an additional 10 percent of their total investment limit in highly liquid foreign government bonds issued by countries holding an international credit rating of 'A-' or higher. Such investments can be increased up to a maximum of 50 percent for a maximum of five years' period.

Previously, BFIs...