Nepal Rastra Bank unveils report on Foreign Exchange Derivative Market; finds out only 14% firms using instruments of derivative market

Nepal Rastra Bank has unveiled the findings of the report on the Foreign Exchange Derivative Market after concluding its research on the subject.

As per the report, India, Bangladesh, Pakistan, and Srilanka in the South Asian region have been found to have a well-managed derivative market. After analyzing the data provided by the respondents, the central bank has found that only 14.8% of firms are using the derivative products in Nepal among which most of them belong to steel and metal-related industries.

According to the report, only 37% of firms reported that there is no risk involved in the derivative market where 52% of firms who reported that there’s a risk involved are found not to have adequate knowledge about the derivative market.

The report has urged the government and related stakeholders to work for the betterment of the derivative market so as to bring in more foreign investment and for broadening the national economy, as per the media statement.