Foreign exchange reserve swells
The gross foreign exchange reserves surged by 32.3 per cent to Rs 360.14 billion in mid-February from a level of Rs 272.15 billion as at mid-July 2011, according to Nepal Rastra Bank (NRB). Such reserves had declined by four per cent to Rs 258.10 billion in the same period of last fiscal year.
“Out of the total reserve, NRB’s reserves increased by 40.9 per cent to Rs 300.29 billion from a level of Rs 213.10 billion as at mid-July 2011 and in US dollar terms, the gross foreign exchange reserves increased by 14.6 per cent to $4.40 billion in mid-February from the level of mid-July 2011,” it said, adding that such reserves had declined by 1.9 per cent in the same period last year.
Based on the import trend during the seven months of the current fiscal year, the current level of reserves is sufficient for financing merchandise imports for 10 months and merchandise and service imports for nine months.(Source:THT)