Himal Press 
KATHMANDU: Nepal’s foreign exchange reserve increased by 15.2% to Rs 1,401.21 billion in mid-March compared to Rs 1,215.80 billion in mid-July, 2022.
In the US dollar terms, the reserves increased by 12.1% to 10.69 billion in mid-March compared to 9.54 billion in mid-July, 2022, the Current Macroeconomic and Financial Situation of Eight Months of 2022/23 released on Tuesday by the Nepal Rastra Bank (NRB) said.
Based on the imports of the first eight months of the current fiscal year, the reserve is sufficient to cover merchandise imports of 10.9 months and merchandise and service imports of 9.4 months.
Inflation at 7.44%
According to the report, the year-on-year consumer price inflation remained at 7.44% in mid-March compared to 7.14% in the same period a year ago. While food and beverage inflation stood at 5.64%, non-food and service inflation rose to 8.87% percent in the review month.
Under the food and beverage category, the y-o-y price index of cereal grains and their products sub-category increased by 14.35%, restaurant & hotel by 14.09%, spices by 10.88%, tobacco products by 10.83%, and alcoholic drinks by 8.78%. Similarly, under the non-food and services category, the price index of the transportation sub-category rose by 13.23%, health by 10.39%, housing & utilities by 9.72%, recreation & culture by 8.81%, and furnishing & household equipment by 8.79%.
Inflation in Kathmandu Valley was recorded at 7.95%, while it was at 7.5%, 6.67%, and 8.07% in Tarai, hilly and mountainous regions, respectively.
Exports down 29.1%
During the eight-month period, exports decreased 29.1% to Rs.104.80 billion against an increase of 82.9% in the same period of the previous year. Destination-wise, exports to India and China decreased by 37.5% and 4.9%, respectively whereas exports to other countries increase by 6%. Exports of zinc sheet, cardamom, particle board, woolen carpets, tea, among others, increased
whereas exports of soyabean oil, palm oil, oil cakes, textiles, silverware and jewelry, among others, decreased in the review period.
Similarly, imports fell by 19.1% to Rs 1058.39 billion against an increase of 38.6% a year ago. Destination-wise, imports from India, China and other countries fell by 17.6%, 21.7%, and 21.4%, respectively. Imports of petroleum products, chemical fertilizer, sponge iron, gold, other stationeries, among others, increased whereas imports of transport equipment & parts, medicine, MS billet, crude soyabean oil, telecommunication equipment and parts, among others, decreased in the review period.
