Nepal’s forex reserves stand at Rs 3.946 trillion, sufficient to finance imports for 21.8 months
Summary
Nepal’s gross foreign exchange reserves rose 1.2 percent to Rs 3.946 trillion in mid-August, enough to finance merchandise imports for 21.8 months. The increase was driven by higher remittance inflows and a surplus in the current account and balance of payments, even as the trade deficit widened.
Key Points
- Nepal’s gross foreign exchange reserves increased to Rs 3.946 trillion in mid-August, or $25.84 billion.
- The reserves are sufficient to cover merchandise imports for 21.8 months and merchandise and services imports for 18.8 months.
- Remittance inflows jumped 21.2 percent to Rs 215.05 billion, lifting the current account and BoP into surplus.
- Despite the stronger reserve position, the trade deficit widened 24.9 percent as imports rose sharply.
