KATHMANDU: Nepal Rastra Bank (NRB) has said that the foreign exchange reserves of the banking sector are sufficient to cover the prospective imports of 10.9 months, and merchandise and services imports of 9.4 months.

Though the foreign exchange reserve has increased in the country, the current account remained at a deficit of Rs 44.31 billion in the first eight months of the current fiscal year.

During the same period in the last fiscal year, the current account was in a deficit of Rs 460.72 billion.

According to the current macroeconomic and financial situation of Nepal based on eight months’ data published by the Nepal Rastra Bank, the gross foreign exchange reserves increased 15.2 percent to Rs 1401.21 billion in mid-March 2023 from Rs. 1215.80 billion in mid-July 2022.

Likewise, the Balance of Payments (BOP) remained at a surplus of Rs 148.11 billion in the review period compared to a deficit of Rs. 258.64 billion in the same period of the previous year, the central bank said.

Of the total foreign exchange reserves, reserves held by the central bank increased 17.8 percent to Rs 1244.94 billion in mid-March 2023 from Rs 1056.39 billion in mid-July 2022.

The Nepal Rastra Bank said that the reserves held by banks and financial institutions, decreased 2 percent to Rs 156.27 billion in mid-March 2023.