KATHMANDU, Feb 2: While Nepal's internal economic growth remains sluggish, external sector indicators have shown significant improvement, with foreign exchange reserves reaching a record high.
According to the data released by the Nepal Rastra Bank (NRB) on Sunday, the country’s foreign exchange reserves which stood at Rs 2.0411 trillion in mid-July 2024 increased by 13.5 percent to Rs 2.31684 trillion by mid-January 2025. These foreign exchange reserves are sufficient to cover 17.3 months of prospective merchandise imports and 14.4 months of goods and services imports.
External sector worsening despite economic growth
The balance of payments (BoP) remains in a surplus of Rs 249.26 billion, slightly lower than last year’s surplus of Rs 273.52 billion during the same period. Similarly, the current account stands at a surplus of Rs 148.17 billion, compared to Rs 162.56 billion last year.
NRB attributes this positive trend to steady remittance inflows and a rise in tourism revenue.
