Friday 15th January 2021

Nepal’s Forex Reserves Surge 7.4% to Over NPR 1500 Billion!

The remittance inflows increased 11.2% to NPR 337.72 billion in the review period.
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Nepal’s Forex Reserves Surge 7.4% to Over NPR 1500 Billion!

The Nepal Rastra Bank (NRB) on Monday published the Current Macroeconomic and Financial Situation Report for four months from mid-July to mid-November 2020.

According to the report, Nepal’s gross foreign exchange reserves reached NPR 1506.06 billion in mid-November, an increase of 7.4% from NPR 1401.84 billion in mid-July 2020.

In terms of the US Dollar, the gross foreign exchange reserves increased 8.6% to USD 12.65 billion from USD 11.65 billion in the mentioned period.

Reserves held in Mid-July Mid-November % Change
NRB NPR 1226.12 billion NPR 1332.06 billion Up by 8.6%
BFIs (except NRB) NPR 175.71 billion NPR 173.99 billion Down by 1.0%

Forex Adequacy Indicators

As per the report, the forex adequacy indicators in mid-July and mid-November are as follows:

Forex Adequacy Indicators Mid-July Mid-November
Reserves-to-GDP 40.0% 37.2%
Reserves-to-imports 116.3% 105.7%
Reserves-toM2 33.4% 33.1%

Moreover, the foreign exchanges are sufficient to cover the prospective merchandise imports of 15.4 months and merchandise and services imports of 14.0 months.

Also Read: Nepal, World Bank Pens NPR 9.3 Billion Project to Boost Agriculture Sector!

Remittances to Nepal

Remittances to Nepal

As per the report, the remittance inflows increased 11.2% to NPR 337.72 billion in the review period against a decrease of 2.8% in the same period last year. In terms of the US Dollar, remittance inflows increased by 6.4% to 2.85 billion in the review period against a decrease of 1.9% in the same period last year.

The net transfer spiked 8.8% to NPR 373.04 billion in the review period against a decrease of 2.9% last year.

Meanwhile, the number of Nepali workers applying for foreign employment dropped 75.8% to 19251 in the review period against an increase of 5.6% last year. In the case of ‘Renew Entry,’ the number dropped 67.9% to 25931 in the review period against an increase of 9.1% last year.

Nepal Current Account and Balance of Payments

Category Mid-July to Mid-November
2020 2019
Current Account NPR 20.46 billion (Surplus) NPR 34.12 billion (Deficit)
Capital Transfer NPR 4.15 billion NPR 4.57 billion
FDI NPR 3.75 billion NPR 4.92 billion
Balance of Payments (BOP) NPR 110.65 billion NPR 27.29 billion

Stay Tuned to NepaliSansar for Latest Nepal Economy News!

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