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
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!
The post Nepal’s Forex Reserves Surge 7.4% to Over NPR 1500 Billion! appeared first on Nepali Sansar.