Nepal’s Struggling Foreign Exchange Reserves Improves
Over the previous month, Nepal’s foreign exchange reserves have slightly increased.
According to Nepal Rastra Bank, the foreign exchange reserves increased by around Rs 29 billion in a month to reach Rs 1.176 trillion on June 14 from Rs 1.146 trillion on May 14.
Between June 2021 and April 2022, Nepal’s foreign exchange reserves decreased by more than 15%.
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The Nepal Rastra Bank claims to hold Rs. 1.031 trillion in foreign exchange reserves, with the remaining Rs. 114.95 billion held by other commercial banks.
According to the central bank, the nation may use its current foreign currency to purchase goods and services for fewer than seven months.
The Nepalese balance of payments is at its lowest point ever as a result, which is welcomed news. As Nepal’s foreign exchange reserves were decreasing, the central bank tightened regulations and procedures for currency conversion.
Additionally, the Nepal Rastra Bank implemented a new policy that raised the price of a variety of goods, including alcohol, cosmetics, and automobiles. The government is also getting ready to extend the April import ban it placed on ten particular luxury goods.
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