The gross foreign exchange reserve fell by 16.2%

The gross foreign exchange reserve fell by 16.2%

The gross foreign exchange reserve fell by 16.2%

KATHMANDU: The gross foreign exchange reserve decreased by 16.2%.

According to the report based on the data of seven months ending mid-February of the financial year 2021/22 published by Nepal Rastra Bank, the foreign exchange reserve fell to 1173.02 billion rupees in mid-February 2022 against 1399.03 billion rupees in mid-July. 2021.

In US dollars, gross foreign exchange reserves decreased by 17.0% to stand at 9.75 billion in mid-February 2022, compared to 11.75 billion in mid-July 2021.

Of the total foreign exchange reserves, the reserves held by the NRB decreased by 17.7% to reach 1024.60 billion rupees in mid-February 2022, compared to 1244.63 billion rupees in mid-July 2021.

Reserves held by banks and financial institutions (excluding NRB) decreased by 3.9% to 148.42 billion rupees in
mid-February 2022 against 154.39 billion rupees in mid-July 2021.

The share of Indian currency in total reserves stood at 24.2% in mid-February 2022.

Similarly, based on seven-month imports of 2021/22, foreign exchange reserves of the banking sector
is sufficient to cover 7.4 months forecasted imports of goods, and goods and services
imports of 6.7 months.

Reserves to GDP (previous year), reserves to imports and reserves to M2 ratio stood at 27.5%, 55.8% and 22.1% respectively as of mid-February 2022. These ratios were 32.8 %, 84.7% and 27.1% respectively in mid-July 2021.

The Nepalese currency vis-à-vis the US dollar depreciated by 1.06% in mid-February 2022 compared to mid-July 2021. It had appreciated by 3.53% during the same period of the previous year. The buying exchange rate per US dollar stood at 120.32 rupees in mid-February 2022, compared to 119.04 rupees in mid-July 2021.