November 18: Foreign exchange reserves of Nepal have increased 2.5 percent to Rs 1246.22 billion in mid-October 2022 from Rs 1215.80 billion in mid-July 2022, according to the latest report of Nepal Rastra Bank (NRB).
Issuing the Current Macroeconomic and Financial Situation Report of Nepal on Wednesday, the central bank said that the gross foreign exchange reserves in terms of US dollars decreased 0.6 percent to 9.48 billion in mid-October 2022 from 9.54 billion in mid-July 2022.
The report is based on three months’ data ending Mid-October, 2022/23.
Of the total foreign exchange reserves, reserves held by NRB increased 4.3 percent to Rs 1101.60 billion in mid-October 2022 from Rs 1056.39 billion in mid-July 2022. Reserves held by banks and financial institutions (except NRB) decreased 9.3 percent to Rs 144.62 billion in mid-October 2022 from Rs 159.41 billion in mid-July 2022. The share of Indian currency in total reserves stood at 23.8 percent in mid-October 2022.
Foreign Exchange Adequacy Indicators
The central bank stated that based on the imports of three months of FY 2022/23, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 9.6 months, and merchandise and services imports of 8.3 months. The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 25.7 percent, 69.5 percent and 22.5 percent respectively in mid-October 2022.
Such ratios were 25.1 percent, 57.8 percent and 22.1 percent respectively in mid-July 2022. -- RSS