The country's foreign exchange reserves have been found depleting despite several attempts by the government to discourage imports.

Foreign exchange reserves declined by Rs 2.8 billion in March/April.

According to Nepal Rastra Bank, foreign exchange reserves stood at 1, 167.92 billion in the first nine months of the current fiscal year.

As of February, the foreign exchange reserves stood at Rs 1. 17 trillion.

The foreign exchange reserves have been decreasing steadily in recent times.

Nepal Rastra Bank said that the gross foreign exchange reserves decreased 16.5 percent to Rs1167.92 billion in mid-April 2022 from Rs1399.03 billion in mid-July 2021.

In US dollar terms, the gross foreign exchange reserves decreased 18.2 percent to 9.61 billion in mid-April 2022 from 11.75 billion in mid-July 2021.

Of the total foreign exchange reserves, the reserves held by Nepal Rastra Bank decreased 17.9 percent to Rs 1021.45 billion in mid-April 2022 from Rs 1244.63 billion in mid-July 2021.

The reserves held by banks and financial institutions (except NRB) decreased 5.1 percent to Rs 146.48 billion in mid-April 2022 from Rs 154.39 billion in mid-July 2021.

The share of Indian currency in total reserves stood at 24.3 percent in mid-April 2022.

 Based on the imports of nine months of 2021/22, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 7.4 months, and merchandise and services imports of 6.6 months.

The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 24.1 percent, 55.2 percent and 21.9 percent respectively in mid-April 2022.

Such ratios were 32.7 percent, 84.7 percent and 27.1 percent respectively in mid-July 2021.