Foreign Exchange Reserves Declines By 2.6 Percent: NRB

July 15, 2021 | Investopaper

The gross foreign exchange reserves decreased 2.6 percent to Rs.1365.65 billion in mid-June 2021 from Rs.1401.84 billion in mid-July 2020. In US Dollar terms, the gross foreign exchange reserves increased 0.6 percent to 11.71 billion in mid-June 2021 from 11.65 billion in mid-July 2020.

Of the total foreign exchange reserves, reserves held by NRB decreased 2.3 percent to Rs.1197.65 billion in mid-June 2021 from Rs.1226.12 billion in mid-July 2020. Reserves held by banks and financial institutions (except NRB) decreased 4.4 percent to Rs.168.0 billion in mid-June 2021 from Rs.175.71 billion in mid-July 2020. The share of Indian currency in total reserves stood at 24.6 percent in mid-June 2021.

Import and Export

During the eleven months of 2020/21, merchandise exports increased 37.8 percent to Rs.121.25 billion compared to an increase of 0.2 percent in the same period of the previous year. Destination-wise, exports to India and other countries increased 43.3 percent and 25.9 percent respectively whereas exports to China decreased 17.4 percent. Exports of soyabean oil, cardamom, polyester yarn and threads, jute goods, woolen carpet, among others, increased whereas exports of palm oil, pulses, zinc sheet, wire, cattle feed, among others, decreased in the review period.

During the eleven months of 2020/21, merchandise imports increased 25.7 percent to Rs.1383.36 billion against a decrease of 15.3 percent a year ago. Destination-wise, imports from India, China, and other countries increased 32.2 percent, 24.0 percent, and 9.9 percent respectively. Imports of transport equipment & parts, crude soyabean oil, M.S. billet, rice, telecommunication equipment, and parts, among others, increased whereas imports of aircraft spare parts, crude palm oil, video television and parts, cold-rolled sheet in coil, silver, among others, decreased in the review period.

Based on customs points, exports from Tatopani, Kanchanpur, and Rasuwa Customs Offices decreased whereas exports from all the other customs points increased in the review period. On the import side, imports from all the other customs points increased except Tatopani and Rasuwa Customs Offices in the review period.

Total trade deficit increased 24.6 percent to Rs.1262.11 billion during the eleven months of 2020/21. Such deficit had decreased 16.4 percent in the same period of the previous year. The export-import ratio increased to 8.8 percent in the review period from 8.0 percent in the same period of the previous year.

 

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