KATHMANDU: Nepal’s gross foreign exchange reserves soared by 24.2 percent to reach Rs. 1911.86 billion in mid-April 2024, according to the latest data released by the Nepal Rastra Bank (NRB).
This marks a significant increase from the Rs. 1539.36 billion recorded in mid-July 2023.
In US dollar terms, the gross foreign exchange reserves saw a robust growth of 22.7 percent, reaching $14.36 billion in mid-April 2024, up from $11.71 billion in mid-July 2023.
Of the total foreign exchange reserves, those held by the NRB surged by 25.4 percent to Rs. 1688.21 billion in mid-April 2024 from Rs. 1345.78 billion in mid-July 2023.
Meanwhile, reserves held by banks and financial institutions (excluding the NRB) increased by 15.5 percent to Rs. 223.65 billion in mid-April 2024 from Rs. 193.59 billion in mid-July 2023.
The Indian currency comprised 21.6 percent of the total reserves in mid-April 2024.
Foreign Exchange Adequacy Indicators:
Based on nine months of 2023/24 imports, the foreign exchange reserves of the banking sector are sufficient to cover prospective merchandise imports for 15 months and merchandise and services imports for 12.5 months.
The ratio of reserves-to-GDP, reserves-to-imports, and reserves-to-M2 stood at 33.5 percent, 104 percent, and 28.9 percent respectively in mid-April 2024.
These figures represent an increase from mid-July 2023, where the ratios were 28.8 percent, 83.0 percent, and 25.0 percent respectively.
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