KATHMANDU: Nepal’s foreign exchange reserves have surged to an impressive level of nearly 1.6 trillion rupees, as per the latest data released by the Nepal Rastra Bank (NRB), detailing the economic and financial situation for the initial two months of the current fiscal year, 2080/81.

In a noteworthy development, the foreign exchange reserves, which stood at 1.573 trillion rupees in Shrawan, witnessed a significant increase of 25.78 billion rupees within a single month, propelling the total reserves to a commendable 1.599 trillion rupees by the end of the Nepali month of Bhadra. This represents a robust 3.9 percent surge compared to the previous fiscal year’s closing month of Ashadh. In US dollars it is 12.1 billion, a 2.6 percent increment since Ashadh.

The current level of foreign exchange reserves is deemed adequate to cover imports for 12.6 months, as stated by the Central Bank. This ample reserve position exceeds the requirement for goods and services import coverage for 10.3 months.

By the end of Bhadra in 2080, the ratios of foreign exchange reserves concerning total domestic production, total imports, and detailed currency providers reached 29.7 percent, 86 percent, and 26.2 percent, respectively. This reflects a significant improvement over the ratios recorded at the end of Ashadh 2080, which were 28.6 percent, 83 percent, and 25.1 percent, respectively.