Nepal's External Sector Shows Positive Trends Through Mid-January of FY 2082/83, Says Central Bank

Kathmandu. The external sector has shown a positive trend up to the end of Magh in the current fiscal year 2082/83. As of this period, the country's current account and balance of payments are in high surplus, and foreign exchange reserves are sufficient to cover 18 months of imports.

According to the report on the country's current economic and financial status based on data up to the end of Magh of the fiscal year 2082/83, made public by Nepal Rastra Bank today, the current account is in surplus by Rs 493.78 billion.

In the same period last year, the current account was in surplus by Rs 184.14 billion. In US dollars, the current account, which was in surplus by $1.37 billion in the same period last year, is in surplus by $3.47 billion this year.

Furthermore, the net capital transfer as of the end of last Magh stood at Rs 11.43 billion. In the same period last year, such a transfer was Rs 5.83 billion. Similarly, during the review period, Foreign Direct Investment (equity only) worth Rs 10.22 billion flowed in.

In the same period last year, such Foreign Direct Investment was Rs 7.43 billion. According to the central bank, the balance of payments position during this period is in surplus by Rs 572.73 billion. In the same period last year, the balance of payments position was in surplus by Rs 284.41 billion.

The total foreign exchange reserves, which stood at Rs 2,677.68 billion as of the end of Ashad, have increased by 23.3 percent in the last seven months to reach Rs 3,302.66 billion.

In US dollars, these reserves, which were $19.05 billion as of the end of Ashad 2082, have increased by 16.7 percent to reach $22.76 billion as of the end of Magh 2082.

Of the total foreign exchange reserves, the reserves held by Nepal Rastra Bank increased by 21.2 percent from Rs 2,414.64 billion as of the end of Ashad 2082 to Rs 2,926.99 billion as of the end of Magh 2082.

The foreign exchange reserves held by Banks and Financial Institutions (excluding Nepal Rastra Bank) increased by 42.8 percent from Rs 263.04 billion as of the end of Ashad 2082 to Rs 375.67 billion as of the end of Magh 2082.

The share of the Indian Rupee in the total foreign exchange reserves as of the end of last Magh was 21.5 percent. Based on imports for the first seven months of the current fiscal year, the foreign exchange reserves held by the banking sector are sufficient to cover 21.3 months of merchandise imports and 18 months of merchandise and service imports, the central bank stated.