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The second edition of the Nepal Business Summit is set to take place in Kathmandu on April 20.

The event will be organized in collaboration with the Government of Nepal, the Ministry of Industry, Commerce, and Supplies.

An agreement regarding the organization of the summit was signed between the Nepal Chamber of Commerce (NCC) and the Nepal Business Institute (NBI).

This year's summit, organized under the theme of "Economy for a Sustainable and Resilient Future", will focus on the burning issues seen in the economic, banking, industrial/business, and high-potential sectors, and will involve intensive discussions, debates, and interactions between domestic and foreign academics/experts of the relevant subjects/sectors, emerging youth and women entrepreneurs.

The objective is to prepare a conclusion report containing useful suggestions of far-reaching importance obtained from the debate sessions and hand them over to the three-tier government for proper implementation, said Executive Chairperson of Nepal Business Institute and Coordinator of Summit Organizing Committee, Bishal Gaire.

President Nepal Chamber of Commerce, Kamlesh Agrawal, expressed his belief that the summit will create an environment to encourage and make the entire private sector dynamic by holding extensive discussion and interactions on problems seen in economic, banking, business, information technology and agriculture sectors.

Similarly, Nepal Business Institute (NBI) Executive Chairperson and Summit Organizing Committee Coordinator Bishal Gaire said that the summit will be a starting point for sustainable and broad-based economic development by encouraging domestic investment and attracting foreign investment through sustainable banking development, industrialization, agriculture, tourism, hydropower, forest products, technology, upgrading of small and medium enterprises, self-entrepreneurship and startup businesses, venture capital, and incubation, among other sectors.

The summit will be attended by more than 500 people, including high-ranking political and administrative officials of the federal government, provincial chief ministers, heads of local bodies, domestic and foreign experts, economists, banking experts, representatives of donor agencies, leaders of leading private sector organizations, chairmen/directors and high-ranking officials of banks and financial institutions, industrialists and businessmen, emerging youth and women, youth and women working in innovative sectors, youth involved in IT and digital technology, human resources returned from foreign employment, and higher education students.

The investment limit for banks and financial institutions licensed to transact convertible foreign currency has been increased, boosting their income and profits. Banks can now invest up to 20 percent of their primary capital in proprietary derivatives transactions, including both the purchase and sale of outstanding amounts. Previously, the limit was 15 percent. Nepal Rastra Bank’s Department of Foreign Exchange Management amended the Unified Circular, raising the limit by five percent.

Licensed ‘A’ category banks must manage their convertible foreign currency investments and mitigate exchange rate risks while ensuring transactions do not involve speculation. Total foreign exchange reserves are held by Nepal Rastra Bank and commercial banks. Increasing foreign exchange investment in banks will enhance their income and profitability, says Ramu Poudel, spokesperson for Nepal Rastra Bank. “Foreign exchange flows into banks, and they are now allowed to invest up to 20 percent of their primary capital. This increase from the previous 15 percent cap will help banks generate higher income and profits,” Poudel told ApEx.

With this change, the central bank will no longer need to absorb excess foreign exchange from the market. The total foreign exchange remains the same, but the portion previously held by Nepal Rastra Bank will now be available to commercial banks. Additionally, banks cannot hold open positions in derivatives transactions; all positions must be squared up. The exposure of such transactions must be reported in convertible foreign exchange, and proprietary transactions cannot exceed a three-month period. If foreign exchange outflows occur while reconciling net accounts, the central bank must be informed as per existing regulations.

This provision also governs foreign exchange balances and derivative instruments that banks and financial institutions can maintain in agency banks abroad. Licensed ‘A’ category banks and national-level ‘B’ institutions may engage in derivatives transactions within the foreign exchange market, following policy criteria set by their boards of directors. They are also permitted to invest convertible foreign exchange balances in their foreign agency banks.

The price of gold has increased by Rs 300 per tola in the domestic market on Thursday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 170, 900 per tola today. It was traded at Rs 170, 400 per tola on Wednesday.

Similarly, the price of silver has increased by Rs 35 and is being traded at Rs 1, 985 per tola today.

The Nepal Stock Exchange (NEPSE) plunged by 25. 16 points to close at 2, 821. 13 points on Wednesday.

Similarly, the sensitive index dropped by 5. 70 points to close at 469. 56 points.

A total of 23,343,201-unit shares of 308 companies were traded for Rs 10. 97 billion.

Meanwhile, Samaj Laghubittya Bittiya Sanstha Limited (SAMAJ) and Guardian Micro Life Insurance Limited (GMLI) were the top gainers today with their price surging by 10. 00 percent. Likewise, Green Development Bank Ltd. (GRDBL) was the top loser with its price dropped by 6. 84 percent.

At the end of the day, the total market capitalization stood at Rs 4. 68 trillion.