Nepal’s foreign exchange reserves climbed to USD 20.41 billion
Summary
Nepal's foreign exchange reserves have risen to USD 20.41 billion, sufficient to cover 16 months of imports, driven mainly by increased remittance inflows and government policies to curb imports.
Key Points
- Nepal's foreign exchange reserves reached Rs 2881 billion (USD 20.41 billion) as of September 16, covering 16 months of imports.
- Remittance inflows increased by 33.1 percent in the first two months of the current fiscal year, being the main contributor to reserve growth.
- The Nepal Rastra Bank implemented higher interest rates and cash margin deposits to curb imports and conserve foreign currency.
- Experts suggest cautious utilization of foreign currency reserves for economic development, with concerns over import dependency and FATF Grey List placement.
