Foreign Exchange Reserves Drops 1.5 Percent | Trade Deficit At Rs.116.48 Billion In Shrawan

September 16, 2022 | Investopaper

The gross foreign exchange reserves decreased 1.5 percent to Rs.1197.85 billion in mid-August 2022 from Rs.1215.80 billion in mid-July 2022. In the US dollar terms, the gross foreign exchange reserves decreased 1.2 percent to 9.42 billion in mid-August 2022 from 9.54 billion in mid-July 2022.

Of the total foreign exchange reserves, reserves held by NRB decreased 0.7 percent to Rs.1049.11 billion in mid-August 2022 from Rs.1056.39 billion in mid-July 2022. Reserves held by banks and financial institutions (except NRB) decreased 6.7 percent to Rs.148.74 billion in mid-August 2022 from Rs.159.41 billion in mid-July 2022. The share of Indian currency in total reserves stood at 22.9 percent in mid-August 2022.

Based on the imports of first month of 2022/23, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 9.4 months, and merchandise and services imports of 8 months.

Exports & Imports

During the first month of 2022/23, merchandise exports decreased 28.7 percent to Rs.14.81 billion against an increase of 115.9 percent in the same period of the previous year. Destination-wise, exports to India and China decreased 36.5 percent and 24.4 percent respectively whereas exports to other countries increased 5.7 percent.

Exports of palm oil, zinc sheet, readymade garments, medicine (ayurvedic), particle board, among others, increased whereas exports of soyabean oil, oil cakes, jute goods, juice, cardamom, among others, decreased during this period.

Similarly, during the first month of 2022/23, merchandise imports decreased 12.9 percent to Rs.131.29 billion against an increase of 75.7 percent a year ago. Destination-wise, imports from India, China and other countries decreased 12.1 percent, 10.5 percent, and 15.9 percent respectively.

Imports of petroleum products, sponge iron, medicine, chemical fertilizer, crude palm oil, among others, increased whereas imports of transport equipment & parts, M.S. billet, telecommunication equipment and parts, crude soyabean oil, hot rolled sheet in coil, among others, decreased in the review period.

Based on customs points, exports from Krishnanagar, Kailali, Mechi and Tribhuwan Airport Customs Offices increased whereas exports from all the other major customs points decreased during this period. On the import side, imports from Tatopani, Jaleshwor, Dry Port, Kailali and Rasuwa Customs Offices increased whereas imports from all the other major customs points decreased.

The total trade deficit decreased 10.4 percent to Rs.116.48 billion in the first month of 2022/23. Such a deficit had increased 70.6 percent in the corresponding period of the previous year. The export-import ratio decreased to 11.3 percent in the review period from 13.8 percent in the corresponding period of the previous year.


Custom-wise Foreign Trade (First Month, FY 2022/23)

Rs. in million 

S.N. Major Custom Points Exports Imports
2021/22 2022/23 % Change  2021/22 2022/23 % Change 
1 Bhairahawa Customs Office 878.1 501.9 -42.8 26095.2 18306.7 -29.8
2 Biratnagar Customs Office 5863.0 4801.2 -18.1 18401.6 16351.3 -11.1
3 Birgunj Customs Office 9597.0 4452.9 -53.6 50464.9 47797.6 -5.3
4 Dry Port Customs Office 356.2 297.0 -16.6 17036.8 17762.8 4.3
5 Jaleshwor Customs Office 0.0 85.9 669.3 704.4 5.2
6 Kailali Customs Office 73.9 110.9 50.0 1815.5 1873.3 3.2
7 Kanchanpur Customs Office 4.5 1.5 -66.1 234.7 114.8 -51.1
8 Krishnanagar Customs Office 33.6 60.3 79.3 2354.4 1794.3 -23.8
9 Mechi Customs Office 906.0 1207.6 33.3 4625.1 4100.0 -11.4
10 Nepalgunj Customs Office 150.2 119.2 -20.7 7399.0 5227.4 -29.3
11 Rasuwa Customs Office 0.0 0.0 2392.6 2423.8 1.3
12 Tatopani Customs Office 0.0 0.0 311.0 1183.8 280.7
13 Tribhuwan Airport Customs Office 2902.6 3165.3 9.0 17867.3 12769.1 -28.5
14 Others 0.0 6.0 1064.5 876.5 -17.7
Total  20765.1 14809.7 -28.7 150731.7 131286.1 -12.9

Source: Department Of Customs

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