December 15: The gross foreign exchange reserve of Nepal has increased 10.2 per cent in the first four months of the current fiscal year.

The Current Macroeconomic and Financial Situation Report released by Nepal Rastra Bank on Thursday shows that the country’s foreign exchange reserves reached Rs 1696.78 billion from Rs 1539.36 billion from mid-July to mid-November of the current fiscal year.

Of the total foreign exchange reserves, reserves held by the NRB increased to Rs 1490.83 billion in mid-November from Rs 1345.78 billion in mid-July 2023.    
Such reserves in terms of the US dollar increased by 8.9 per cent and reached 12.75 billion in mid-November from 11.71 billion in mid-July.    
Similarly, reserves held by banks and financial institutions (except NRB) increased 6.4 percent to Rs 205.95 billion in mid-November from Rs 193.59 billion in mid-July, states the report. The share of Indian currency in total reserves stood at 21.8 percent in mid- November 2023.    
Based on the imports of four months of 2023/24, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 13.6 months, and merchandise and services imports of 11.3 months, according to the report.