Between mid-July and mid-November, Nepal sells USD 1.36 billion to cover import debts from India.

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During the first four months of the current fiscal year, a total of US $ 1.36 billion was spent to buy Indian currency (INR) to support imports from the southern neighbor, despite the country’s depleted foreign currency reserves. It was about 12% greater than the spent for the same reason during the previous fiscal year’s review period.

According to the Nepal Rastra Bank’s (NRB) ‘Current Macroeconomic and Situation’ report, the aforementioned of USD was offloaded to the Reserve Bank of to acquire the INR equivalent of Rs 161.84 billion. The central bank sold USD 1.22 billion to buy INR worth Rs 144.69 billion between mid-July and mid-November last year.

Every year, the central bank must sell a quantity of USD to buy Indian currency order to manage sufficient finances to import goods from the country. According to NRB figures, accounted for 59 percent of total imports worth Rs 650.29 billion.

Nepal purchased commodities worth Rs 385.95 billion from alone during the review period, a 46.1 percent rise. With its biggest commercial partner, India, the landlocked country has a trade imbalance of Rs 319.01 billion.

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