KATHMANDU: The foreign exchange reserves increased 10.2% to Rs 1,696.78 billion in mid-November 2023 from Rs 1,539.36 billion in mid-July 2023, according to the macroeconomic and financial situation report released by Nepal Rastra Bank (NRB) on December 14.
In US dollar terms, the gross foreign exchange reserves increased 8.9% to 12.75 billion in mid-November 2023 from 11.71 billion in the review period.
Of the total foreign exchange reserves, reserves held by NRB increased 10.8% to Rs 1,490.83 billion in mid-November 2023 from Rs 1,345.78 billion in mid-July 2023. Reserves held by banks and financial institutions (except NRB) increased 6.4% to Rs 205.95 billion in mid-November 2023 from Rs 193.59 billion in the first four months of the current fiscal year 2023/24. The share of Indian currency in total reserves stood at 21.8% in mid-November 2023.
Foreign Exchange Adequacy Indicators
Based on the imports of four months in the current fiscal year, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 13.6 months, and merchandise and services imports of 11.3 months. The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 31.5%, 94.3% and 26.7% respectively in mid-November 2023. Such ratios were 28.6%, 83.0% and 25.1% respectively in mid-July 2023.
