KATHMANDU: Foreign reserves have depleted due to high imports in the country.

According to the data released by Nepal Rastra Bank (NRB) the current foreign reserves can support the import of goods and services for six and half months only.

Based on the six months import of FY 2021/22, the foreign exchange reserves of the banking sector will be sufficient to support 7.2 months import of goods and 6.6 months import of goods and services, said NRB.

As of mid-January 2022, the ratios of foreign exchange reserves to GDP (previous fiscal year), total imports and broad money supply were 27.3 percent, 54.8 percent and 22.0 percent respectively.

As of mid-July 2021, these ratios were 32.8 percent, 84.7 percent and 27.1 percent respectively. Total foreign exchange reserves decreased by 16.7 percent to Rs. 1165.80 billion in mid-January from Rs. 1399.3 billion as in mid July 2021.

In US dollar terms, such reserves decreased by 15.9 percent to $ 9.89 billion in mid-January from $ 11.75 billion in mid-July 2021.

NRB stated that out of the total foreign exchange reserves, the reserves of NRB decreased by 18.4 percent to Rs. 1,015.59 billion in mid-January from Rs. 1244.63 billion.

Foreign exchange reserves of banks and financial institutions (excluding NRB) decreased by 2.7 percent to Rs. 150.21 billion in mid-January from Rs. 154.39 billion in mid-July 2021. Indian currency accounted for 24.5 percent of the total foreign exchange reserves as of mid-January this year.