Nepal foreign exchange reserves rise to Rs 3.946 trillion

Nepal’s foreign exchange reserves rose to Rs 3.946 trillion in mid-August, according to the Nepal Rastra Bank (NRB). This amount provides sufficient funds to cover 21.8 months of merchandise imports, representing a 1.2 per cent increase from mid-July. In US dollar terms, reserves grew 2.1 per cent to $25.84 billion.

The increase was largely driven by remittance inflows, which reached Rs 215.05 billion during the review month, a 21.2 per cent increase from the previous year. While the current account recorded a surplus of Rs 94.59 billion and the overall balance of payments was in surplus at Rs 90.34 billion, the country's trade deficit widened by 24.9 per cent to Rs 148.74 billion due to a 31 per cent jump in merchandise imports.