Nepal’s foreign exchange reserves fail to improve despite the luxury import ban

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Photo by Ibrahim Boran on Unsplash

Kathmandu, October 21

A recent Nepal Rastra Bank report says the country’s foreign exchange reserves fail to improve despite the government continuing the ban on the import of luxury items.

As of the central bank data, the country has foreign currencies worth USD 9.35 billion as of mid-September. It is two per cent less than the amount the country had two months ago (mid-July): USD 9.54 billion.

Of this amount, 24.3 per cent is covered by the Indian currency.

Of the existing foreign currency as of mid-September, the central bank holds Rs 1.051 trillion whereas other banks and financial institutions hold Rs 1.376 trillion.

In this period, remittance inflow in the country increased by 11.3 per cent in terms of USD and by 19.8 per cent in terms of the Nepali currency (due to changing exchange rates). However, it could not be helpful in improving the country’s foreign exchange reserves.

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