KATHMANDU: With the remittances and the tourism sector’s gradual boom, the pressure on foreign exchange reserves has started to ease these days.
According to Nepal Rastra Bank, the foreign exchange reserves stood at Rs. 1,167.92 billion as of mid-April. Foreign exchange reserves declined by Rs 4 billion in Chaitra (March 15 to April 13) compared to the previous month.
At present, the foreign exchange reserves held by Nepal Rastra Bank can sustain the import of goods and services of the country for 6.6 months.
The foreign exchange reserves in Falgun (February 13- March 14) could support imports of goods and services for 6.7 months.
Although the foreign exchange reserves have been declining at an average rate of Rs 40-45 billion in the previous month, it has been limited to Rs 4 billion in Chaitra.
The recent surge in remittance inflows has eased the pressure on foreign exchange reserves. Nepal received remittances of Rs 93.55 billion in Chaitra alone. The remittances worth Rs 91 billion were received in Falgun.
Similarly, foreign exchange pressure is relaxing as the tourism sector has started gaining momentum.
Similarly, the country’s balance of payments has been in deficit of Rs. 268.26 billion till mid-April. It was 42.54 billion in the corresponding period of the previous year.
According to the central bank, the balance of payments has come under pressure due to the increase in the trade deficit.
Likewise, the current account has gone into a deficit of Rs. 512.71 billion by mid-April. It was Rs 210.51 billion in the corresponding period of the previous year.
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