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FX Rule Series: Eligible Sectors

 

  • Major PPP projects in power generation and infrastructure with significant capital investment needs
  • Large mining projects with strong export potential

Other projects identified by the NBE as strategically important, based on factors like size, job creation, import substitution, foreign exchange contributions, technology transfer, or their impact on specific sectors will be eligible to open offshore accounts. NBE reserves the right to oversee any contracts linked to offshore accounts to ensure they are free from malpractice. External debt servicing including reserve accounts for debt service. Insurance claims, contractor fees, and other warranty claims in foreign currency.

Capital or investment-related expenses. Maintenance and operational costs.

  • Debt-to-Equity Ratio

The standard debt-to-equity ratio for foreign capital is capped at 80:20. The NBE Board may grant special exceptions on a case-by-case basis if deemed appropriate.

  • Convertibility Guarantee

Convertibility Guarantee is assurance that local currency funds can be converted into foreign currency at the prevailing exchange rate. Convertibility guarantee is applicable to strategic PPP projects in the energy and mining sectors, for loan repayments and dividend repatriation. Conversion will be conducted at the prevailing official rate and will never take priority over the servicing of sovereign external debt.

  • Reporting

Eligible strategic FDI projects must submit quarterly financial statements to NBE, detailing the inflows and outflows of their offshore accounts. Annual projections of anticipated foreign exchange inflows and outflows to assist the NBE in monitoring foreign exchange activity is also a requirement.

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FX Rules Series: Foreign Currency Accounts – FXD/0...
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