Nepal’s Foreign Exchange Reserves Rise, Current and Capital Accounts Strong

Kathmandu: According to data from Nepal Rastra Bank, the country’s total foreign exchange reserves reached NPR 3.41377 trillion by the end of Falgun in FY 2082/83. The central bank stated that this reserve is sufficient to cover 18.5 months of imports of goods and services, or 21.4 months if only goods are considered. During the review period, foreign exchange reserves increased significantly, with the Indian currency accounting for 21% and remittance income rising 37.7% to NPR 1.44965 trillion. Both the current account and the capital account showed strong surpluses, with savings of NPR 55.285 billion and NPR 65.835 billion respectively. Foreign direct investment and net capital transfers also increased. Analysts consider this positive improvement in foreign reserves as a key indicator of Nepal’s economic stability and external balance.