Foreign Exchange Reserves Increase by 11.3 Percent, Sufficient to Cover 19.9 Months of Goods Imports

30 Kartik, Kathmandu. Foreign exchange reserves have increased by 11.3 percent.

The economic and financial report of the country for the fiscal year 2082-83, published by Nepal Rastra Bank, states that as of the end of Ashwin, foreign exchange reserves have increased by 11.3 percent to reach 2979 arba 81 kharba. As of the end of Ashad, foreign exchange reserves stood at 2677 arba 68 kharba.

In US dollar terms, the reserves were at 19 billion 50 crore at the end of Ashad 2082, which increased by 8.7 percent to reach 21 billion 21 crore by the end of Ashwin 2082.

Of the total foreign exchange reserves, reserves held by Nepal Rastra Bank were 2414 arba 64 kharba as of the end of Ashad 2082, which increased by 10.5 percent to reach 2667 arba 70 kharba by the end of Ashwin 2082. 

Foreign exchange reserves held by banks and financial institutions (excluding Nepal Rastra Bank) were 263 arba 4 kharba as of the end of Ashad 2082, which increased by 18.7 percent to reach 312 arba 10 kharba by the end of Ashwin 2082. In the total foreign exchange reserves as of the end of Ashwin 2082, the share of the Indian currency was 24 percent.

Furthermore, considering the imports up to the third month of the fiscal year 2082-83, it appears that the foreign exchange reserves with the banking sector will be sufficient to cover 19.9 months of goods imports and 16.4 months of goods and services imports. The ratios of total foreign exchange reserves to gross domestic product, total imports, and broad money as of the end of Ashwin 2082 were 48.8 percent, 136.6 percent, and 36.8 percent, respectively. As of the end of Ashad 2082, these ratios were 43.8 percent, 128.1 percent, and 34.1 percent, respectively.