KATHMANDU: Nepal’s gross foreign exchange reserves increased 27.8 percent to Rs 1967.19 billion in mid-June 2024 from Rs 1539.36 billion in mid-July 2023, according to the report of Nepal Rastra Bank (NRB).

The Current Macroeconomic and Financial Situation Report of Nepal unveiled by the NRB on Wednesday mentions that the gross foreign exchange reserves in terms of the US dollar increased 25.7 percent to 14.72 billion in mid-June 2024 from 11.71 billion in mid-July 2023.

Of the total foreign exchange reserves, reserves held by NRB increased 30.2 percent to Rs 1752.77 billion in mid-June 2024 from Rs 1345.78 billion in mid-July 2023.

Reserves held by banks and financial institutions (except NRB) increased 10.8 percent to Rs 214.42 billion in mid-June 2024 from Rs 193.59 billion in mid-July 2023. The share of Indian currency in total reserves stood at 22.3 percent in mid-June 2024.

Based on the imports of eleven months of 2023/24, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 15.1 months, and merchandise and services imports of 12.6 months, the NRB further said in the report.

Likewise, the country’s current account remained at a surplus of Rs 200.39 billion in the first eleven months of the current fiscal year, the report added. According to the central bank, the current account remained at a deficit of Rs 79.53 billion in the corresponding period of the previous year.

In the US Dollar terms, the current account registered a surplus of 1.51 billion in the review period against a deficit of 613.2 million in the same period last year.

In the review period, capital transfer decreased 25.7 percent to Rs 5.46 billion and net foreign direct investment (FDI) remained a positive of Rs 8.16 billion, the report added.

In the corresponding period of the previous year, capital transfer amounted to Rs 7.35 billion and net FDI amounted to Rs 4.65 billion.

Meanwhile, the Balance of Payments (BOP) remained at a surplus of Rs 425.67 billion in the review period against a surplus of Rs 224.9 billion in the same period of the previous year, the NRB report added.

In the US Dollar terms, the BOP remained at a surplus of 3.2 billion in the review period against a surplus of 1.71 billion in the same period of the previous year.