The foreign exchange reserve has dropped below the warning benchmark as it is now sufficient merely for the import of goods and services for 6.9 months.
According to the annual data 2021/22 released by Nepal Rastra Bank (NRB) on August 16, the foreign exchange reserve declined by 15 percent to Rs 1056.39 billion as of mid-July 2022 in comparison to Rs 1244.63 billion recorded in mid-July 2021.
According to the monetary policy for this fiscal year, 2022/023, the warning benchmark for the foreign reserve is stipulated as the reserve of foreign currency needed for the import of goods and services for 7 months.
The amount of foreign reserve at present has declined by 18 percent in terms of the benchmark measured in the US dollar term. The data showed that the foreign exchange reserve declined to USD 9.54 billion in mid-July 2022 which was recorded as USD 11.75 billion in mid-July 2021.
Remittance inflow has increased by 4.8 percent in the fiscal year (FY) 2021/22 in comparison to the previous FY.
According to the Nepal Rastra Bank (NRB) report released today, the total remittance inflow amounted to Rs. 1007.3 billion in FY 2021/22, up from Rs. 961 billion recorded in FY 2020/21.
In terms of the US dollar, remittance inflow increased by 2.2 percent to USD 8.33 billion in comparison to its previous FY.
The data showed an encouraging figure for remittance amount as the number of Nepali workers taking approval for foreign employment has increased significantly to 354,600 in the review year. In addition to it, the number of Nepali workers taking approval for renewing entry for foreign employment increased by 198.5 percent to 282,453 in the review year.
Source: The Rising Nepal