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Kathmandu, Sept 16: Nepal’s foreign exchange reserves climbed to Rs 2.806 trillion by mid-September, up from Rs 2.677 trillion at the end of July, reflecting a 4.8 per cent increase, according to Nepal Rastra Bank.

Measured in US dollars, the reserves increased from USD 19.5 billion in July to USD 20.03 billion in August, a growth of 2.7 per cent.

Within the total reserves, the portion held by Nepal Rastra Bank rose from Rs 2.414 trillion at July-end to Rs 2.511 trillion by August-end, marking a 4 per cent increase. Meanwhile, reserves held by commercial banks and other financial institutions (excluding NRB) went up from Rs 263.04 billion to Rs 294.58 billion, a 12 per cent jump.

Indian currency made up 23.4 per cent of total reserves by the end of August. Based on import data from the first month of fiscal year 2025/26, the reserves can cover 20.4 months of merchandise imports and 16.6 months of combined goods and services imports.

The current account posted a surplus of Rs 78.14 billion during this period, more than double last year’s Rs 33.08 billion. In dollar terms, the surplus rose from USD 250 million to USD 560 million.

Net capital transfers reached Rs 1.04 billion, compared with Rs 220 million in the same period last year. Foreign direct investment totaled Rs 690 million, slightly lower than Rs 800 million a year ago.

The overall balance of payments showed a surplus of Rs 89.30 billion, up from Rs 40.90 billion last year, with the dollar-equivalent surplus rising from USD 310 million to USD 640 million.

People’s News Monitoring Service