Nepal’s foreign exchange reserves have increased significantly over the past five months, according to the current economic and financial situation report of the country up to mid-Mangsir of the current fiscal year 2082/83, released today by Nepal Rastra Bank.
The report shows that foreign exchange reserves increased by NPR 523.79 billion between Shrawan and mid-Mangsir. As per the central bank, total foreign exchange reserves, which stood at NPR 2,677.68 billion at the end of Ashad 2082, rose by 19.6 percent to reach NPR 3,201.47 billion by mid-Mangsir.
In US dollar terms, reserves increased by 13.5 percent, rising from USD 19.50 billion at the end of Ashad to USD 22.13 billion by mid-Mangsir, the central bank said.
Of the total reserves, those held by Nepal Rastra Bank increased by 18.7 percent, from NPR 2,414.64 billion at the end of Ashad to NPR 2,866.47 billion by mid-Mangsir. Similarly, foreign exchange reserves held by banks and financial institutions other than the central bank increased by 27.4 percent to NPR 335 billion.
According to the central bank, Indian currency accounted for 22.2 percent of total foreign exchange reserves as of mid-Mangsir.
Based on imports during the first five months of the current fiscal year, the foreign exchange reserves held by the banking sector are sufficient to cover 21.7 months of merchandise imports and 18.2 months of merchandise and services imports.
During the same period, the current account recorded a surplus of NPR 358.83 billion, compared to a surplus of NPR 158.45 billion in the corresponding period of the previous year. Net capital transfers during the five months amounted to NPR 7.06 billion, up from NPR 3.50 billion in the same period last year.
Similarly, foreign direct investment (equity only) inflows totaled NPR 7.47 billion by mid-Mangsir, compared to NPR 6.03 billion in the corresponding period of the previous year.
Nepal Rastra Bank also reported that the balance of payments recorded a surplus of NPR 421.89 billion during the period, significantly higher than the surplus of NPR 225.34 billion recorded in the same period last year.
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