Foreign reserve drops to 6.9 months’ import

Ajay Chhetri / Kathmandu, Aug. 16: Foreign exchange reserve has dropped below the warning benchmark as it is now sufficient merely for the import of goods and services for 6.9 months.

According to the annual data 2021/22 released by Nepal Rastra Bank (NRB) on August 16, the foreign exchange reserve declined by 15 per cent to Rs 1056.39 billion as of mid-July 2022 in comparison to Rs 1244.63 billion recorded in mid-July 2021.

According to the monetary policy for this fiscal year, 2022/023, the warning benchmark for the foreign reserve is stipulated as the reserve of foreign currency needed for the import of goods and services for 7 months.

The amount of foreign reserve at present has declined by 18 per cent in terms of the benchmark measured in the US dollar term. The data showed that the foreign exchange reserve declined to USD 9.54 billion in mid-July 2022 which was recorded as USD 11.75 billion in mid-July 2021.