Country has forex reserve that can finance merchandise imports of 11.8 months

The gross foreign exchange (forex) reserves increased by 17.3 per cent to Rs 625.47 billion in mid-December 2013 from a level of Rs 533.30 billion as at mid-July 2013, according to the central bank.

Such reserves had increased by 1.4 per cent to Rs 445.59 billion in the same period of the last fiscal year, it said, "Out of total reserves, Nepal Rastra Bank's reserves increased by 14.4 per cent to Rs 518.35 billion from a level of Rs 452.99 billion in mid-July 2013.

The gross foreign exchange reserves in US dollar terms increased by 12.4 per cent to $6.31 billion in mid-December 2013. Such reserves had increased by 3.7 per cent in the same period of the last fiscal year.

Likewise, during the five months of 2013-14, the reserves in terms of inconvertible foreign exchange increased by 21 per cent to IRs 90.17 billion. Such reserves had decreased marginally by 0.2 per cent during the same period of the last fiscal year.

On the basis of trend of import during the five months of the current fiscal year, the current level of reserves is sufficient for financing merchandise imports of 11.8 months and merchandise and service imports of 10.2 months.