July 10: Nepal’s gross foreign exchange reserves increased 21.8 percent to Rs 1480.87 billion in mid-June 2023 from Rs 1215.80 billion in mid-July 2022.

According to the Current Macroeconomic and Financial Situation Report published by the Nepal Rastra Bank on Monday, the gross foreign exchange reserves in terms of the US dollar increased 18.5 percent to 11.30 billion in mid-June 2023 from 9.54 billion in mid-July 2022.

Of the total foreign exchange reserves, reserves held by NRB increased 25.1 percent to Rs 1321.25 billion in mid-June 2023 from Rs 1056.39 billion in mid-July 2022, added the report.

According to the central bank, the reserves held by banks and financial institutions (except NRB) increased 0.1 percent to Rs 159.63 billion in mid-June 2023 from Rs 159.41 billion in mid-July 2022.

The share of Indian currency in total reserves stood at 22.9 percent in mid-June 2023. Foreign

Based on the imports of eleven months of 2022/23, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 11.2 months and merchandise and services imports of 9.6 months.

The NRB report states that the ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 27.5 percent, 80.3 percent and 25.0 percent respectively in mid-June 2023. Such ratios were 24.6 percent, 57.8 percent and 22.1 percent respectively in mid-July 2022.