Forex reserves expands by 6.3%

KATHMANDU: Nepal’s gross foreign exchange reserves increased by 6.3% to Rs 1,292.56 billion in mid-December 2022 from Rs 1,215.80 billion in mid-July 2022.

In US dollar terms, the gross foreign exchange reserves increased by 3% to 9.82 billion in mid-
December 2022 from 9.54 billion in mid-July 2022, data compiled by the Nepal Rastra Bank (NRB) shows.

Of the total reserves, reserves held by the central bank increased 7.8% to Rs 1,139.2 billion in mid-December from Rs 1,056.39 billion in mid-June, shows the Current Macroeconomic and Financial Situation Report (based on the data of first five months of the current fiscal year) released by the NRB on Friday. Reserves held by banks and financial institutions, however, declined by 3.8% to Rs 153,34 billion in mid-December from Rs 159.41 billion in mid-July.

Based on the imports over the five months, the foreign exchange reserves of the banking sector is sufficient to cover the prospective mechandise imports of 10 months, and merchandise and services imports of 8.7 months.