Foreign exchange reserves have declined by about Rs. 78 billion in the first three months of the current fiscal year. The total foreign exchange reserves stood at Rs. 13.19 billion as of the end of last fiscal year. According to the NRB, foreign exchange reserves have declined by 5.7 percent.
In US dollar terms, such reserves decreased by 6.5 percent to Rs. 10.98 billion in the first three months of the current fiscal year from Rs. 11.75 billion at the end of last fiscal year.
Of the total foreign exchange reserves, reserves held by NRB decreased 8.0 percent to Rs.1145.29 billion in mid-October 2021 from Rs.1244.63 billion in mid-July 2021.
Reserves held by banks and financial institutions (except NRB) increased 12.7 percent to Rs.174.03 billion in mid-October 2021 from Rs.154.39 billion in mid-July 2021. The share of Indian currency in total reserves stood at 24.1 percent in mid-October 2021.
Based on the three-month import of FY 2021/22, the foreign exchange reserves of the banking sector will be sufficient to support 8.6 months of import of goods and 7.8 months of import of goods and services, said NRB.
