Nepal’s total foreign exchange reserves reached Rs 4.065 trillion by mid-September in fiscal year 2083/84, while the country recorded a current account surplus of Rs 169.04 billion during the first two months of the fiscal year, according to an economic report released by Nepal Rastra Bank on Thursday. The central bank said the reserves were sufficient to cover 21 months of goods imports. The current account surplus was higher than the Rs 130.97 billion recorded over the same period a year earlier.
The figures point to two indicators of Nepal’s external financial position moving into surplus territory during the opening months of the fiscal year. The reserve total, equivalent to Rs 4,065 billion, reflects the foreign exchange holdings reported by the central bank at mid-September. The current account figure, meanwhile, measures the balance reported for the first two months, allowing a comparison with the corresponding period last year.
Reserves cover 21 months of goods imports
The reserve stock stood at Rs 4.065 trillion at the mid-September reporting point, according to the Nepal Rastra Bank report. The central bank’s estimate that the holdings could cover 21 months of goods imports provides a measure of the reserve level in relation to the country’s import needs. The report’s import-coverage figure specifically refers to goods imports.
The reserve figure is reported as Rs 4,065 billion, or Rs 4 trillion 65 billion. It should not be confused with Rs 40 trillion: the published amount is just over Rs 4 trillion. The distinction matters because the total is expressed in billions in the report and can be misread when converted into trillions. The central bank’s stated coverage period offers a separate way to understand the reported stock, without changing the underlying rupee amount.
The mid-September figure is a point-in-time measure. It describes the reserve position at the end of the reporting period identified in the report, rather than an average across the two months. The report places the reserve level alongside the current account result for the first two months of fiscal year 2083/84, but the two figures refer to different measures: one is a stock of reserves, while the other is a period balance.
Current account surplus rises year on year
Nepal recorded a current account surplus of Rs 169.04 billion in the first two months of fiscal year 2083/84. In the same two-month period last year, the surplus was Rs 130.97 billion. The latest figure is therefore Rs 38.07 billion higher than the year-earlier result, based on the values reported by the central bank.
The comparison is between matching periods, rather than between full fiscal years. That makes the year-on-year increase a comparison of the first two months in each fiscal year. The report does not, in the figures provided, break down the change by individual components, so the overall surplus can be stated without attributing it to particular sources or causes.
Taken together, the reported reserve level and current account surplus provide a snapshot of Nepal’s external accounts at the start of the fiscal year. The reserve figure shows how much foreign exchange the country held at mid-September and how long that stock could cover goods imports at the stated rate. The current account figure records the surplus during the opening two months and shows that it was larger than in the same period last year.
The RatoPati report also reported that foreign exchange reserves had passed the Rs 4 trillion mark. Nepal Rastra Bank’s latest figures therefore place the reserve total at Rs 4.065 trillion, alongside a current account surplus of Rs 169.04 billion. Both measures are drawn from the central bank’s economic report released on Thursday.
