Foreign currency reserves are assets mostly denominated in foreign currency and held by the Central Bank of a nation. These are important to maintain the financial stability of a nation as well as to pay for critical import items, pay off external debts and prevent a sovereign debt crisis. They comprise mainly of Foreign Currency Assets like &nbsp;US dollar, Euro, Bonds and Treasuries, Gold, Special Drawing Rights and IMF Reserve Positions<h2>Types of Foreign Exchange Reserves</h2>Primarily, there are four types of Foreign Exchange Reserves<ul><li>Foreign Currency Assets: These are holdings of major international currencies like the US dollar, Euro, Japanese yen, British pound, and Chinese yuan. They can be in the form of bank notes, bank deposits, bonds and other treasury deposits and securities from other foreign nations.</li><li>Gold: Gold is the historically used Foreign Currency Reserve. Gold acts as a hedge against financial crisis, inflation and currency devaluation.</li><li>Special Drawing Rights: These are Currency Instruments created by the IMF in 1969 as a substitute for the lack of the Dollar and Gold. They are built on a basket of five important currencies: the US Dollar, the Euro, the Japanese yen, the British pound, and the Chinese yuan. SDRs are not currency but claims to a potential usable currency that can be exchanged for them. The weightage of each currency is fixed every 5 years.</li><li>Reserve Positions of IMF: This is like a critical account held within the IMF that countries can access at any point without any condition or fees. It represents a quota for any member country</li></ul><h2>Importance of Foreign Exchange Reserves</h2>Foreign exchange reserves are important to maintain the financial stability of a country. They act as a buffer against financial crisis. Central banks use these to maintain a desired exchange rate. For example, if the currency of a country is weakening quickly, the central bank or monetary authority can sell off extra reserves and buy the domestic currency to increase its demand. Again, if there is a sudden surge in capital outflow or a global recession, these Forex reserves can cushion the impact as India did in 2008.&nbsp;Foreign Exchange reserves are also used for International Trading, like purchasing critical minerals or crude oils, other important merchandise and services. Moreover, a strong Foreign Exchange reserve shows a good financial health of the country, strong liquidity, which means an extra authority for paying external debts, which increases investor confidence. These also influence a strong monetary policy, and fixed rate and the power to intervene in the market in case needed. Some Central Banks use these reserves to invest in highly liquid bonds from high-performing countries like the United States and China.&nbsp;&nbsp;

<figure class="table"><table><tbody><tr><td>Country</td><td>Foreign Currency Reserves&nbsp;</td><td>Notes</td></tr><tr><td>China</td><td>$3.2 trillion&nbsp;</td><td>As of July 2025, China has nearly $3.2 trillion worth of assets, making it the largest owner of foreign exchange reserves in the world. These show the robust nature of the Chinese economy. It consists of a mix of assets, including foreign currencies, gold, bonds, and other financial instruments. The exact composition of the reserve is classified information. However, since 2014, China has been consistently trying to lower its US dollar assets and diversify its foreign currency holdings.</td></tr><tr><td>Japan</td><td>$1.3 trillion&nbsp;</td><td>Japan has $1.3 trillion worth of Foreign Reserves, the second largest in the world. It is also the largest holder of US securities. As of July 2025, the composition of Japan's Foreign Reserves includes, $1.13 trillion of Foreign currency reserves, $89.7 billion of Gold, IMF Reserve position and Special Drawing Rights of approximately $71 billion.</td></tr><tr><td>Switzerland</td><td>$897.6 billion</td><td>In July 2025, Switzerland's Foreign Exchange Reserves were measured at approximately $897.6 billion. Switzerland's Central Bank maintain these reserves in a diversified portfolio. With gold reserves $112.6 billion, other reserve assets are approximately $0.021 billion, a notable gain in SDR and IMF reserve options.</td></tr><tr><td>India</td><td>$695.10 billion</td><td>As of mid-August 2025, the Indian Foreign Reserve stands at $695.10 billion. Foreign Currency Assets (FCA) stood at $585.90 billion, the largest portion in major currencies like the Dollar, Euro, and Franc. Rest is divided up between Gold Reserve, SDR and IMF reserve options.</td></tr><tr><td>Russia</td><td>$689.458 billion</td><td>According to the Central Bank of Russia, Russia's foreign exchange reserves as of now are $689.458 billion, which is an all-time high amount for Russia. The reserves are mostly gold or currencies of other countries; they can be special drawing rights and marketable securities. The exact composition of the reserves is not disclosed.</td></tr><tr><td>Germany</td><td>$471.736 &nbsp;billion</td><td>Foreign Exchange Reserves in Germany increased to 401591 EUR Million in August from 399485 EUR Million in July of 2025</td></tr><tr><td>Saudi Arabia</td><td>$444.068 billion (February 2024)</td><td>Foreign Exchange Reserves in Saudi Arabia decreased to 1665258 SAR Million in July from 1716300 SAR Million in June of 2025.&nbsp;</td></tr><tr><td>Hong Kong</td><td>$421 billion</td><td>Foreign exchange reserve in Hong Kong declined to $421.6 billion in August 2025, from $425.4 billion in the previous month.</td></tr><tr><td>South Korea</td><td>$416.3 billion</td><td>South Korea's foreign exchange reserves increased to $416.3 billion in August 2025, up from $411.3 billion in a month earlier. The rise was due by higher securities holdings, which climbed to $366.2 billion from $365.1 billion, and deposits, which grew to $25 billion from $21.3 billion.&nbsp;</td></tr><tr><td>Singapore</td><td>$389.656 billion&nbsp;</td><td>Singapore has 502,020.80 million Singapore Dollar of Foreign reserves in August 2025 chnaging from 515,481.90 million Singapore Dollar in July 2025</td></tr></tbody></table></figure>

<h2>Which country has the most Forex in the world?</h2>China has the largest foreign reserves in the world, even if Hong Kong is not accounted for together. As of July 2025, China has nearly $3.2 trillion worth of foreign reserves.<h2>What are the risks of holding large Foreign Reserves?</h2>&nbsp;Large Foreign reserves have very little downside.&nbsp;However, the anarchy of international relations produces conflicts and sanctions as a more usual outcome. In such scenarios, foreign assets are frozen, rendered inaccessible. The only major risk is in the process of building large reserves; the increase of domestic money supply can result in inflation if the fiscal monetary management is poor and in developing countries where there is a lack of market integration or available financial instruments.

Discover the List of Countries with the highest Foreign Exchange Reserves. Explore types, importance, risks of holding large foreign exchange reserves and how central banks use reserves for stability and trade.

Foreign currency reserves are assets mostly denominated in foreign currency and held by the Central Bank of a nation. These are important to maintain the financial stability of a nation as well as to pay for critical import items, pay off external debts and prevent a sovereign debt crisis. They comprise mainly of Foreign Currency Assets like US dollar, Euro, Bonds and Treasuries, Gold, Special Drawing Rights and IMF Reserve Positions Types of Foreign Exchange Reserves Primarily, there are four types of Foreign Exchange Reserves Foreign Currency Assets: These are holdings of major international currencies like the US dollar, Euro, Japanese yen, British pound, and Chinese yuan. They can be in the form of bank notes, bank deposits, bonds and other treasury deposits and securities from other foreign nations. Gold: Gold is the historically used Foreign Currency Reserve. Gold acts as a hedge against financial crisis, inflation and currency devaluation. Special Drawing Rights: These are Currency Instruments created by the IMF in 1969 as a substitute for the lack of the Dollar and Gold. They are built on a basket of five important currencies: the US Dollar, the Euro, the Japanese yen, the British pound, and the Chinese yuan. SDRs are not currency but claims to a potential usable currency that can be exchanged for them. The weightage of each currency is fixed every 5 years. Reserve Positions of IMF: This is like a critical account held within the IMF that countries can access at any point without any condition or fees. It represents a quota for any member country Importance of Foreign Exchange Reserves Foreign exchange reserves are important to maintain the financial stability of a country. They act as a buffer against financial crisis. Central banks use these to maintain a desired exchange rate. For example, if the currency of a country is weakening quickly, the central bank or monetary authority can sell off extra reserves and buy the domestic currency to increase its demand. Again, if there is a sudden surge in capital outflow or a global recession, these Forex reserves can cushion the impact as India did in 2008. Foreign Exchange reserves are also used for International Trading, like purchasing critical minerals or crude oils, other important merchandise and services. Moreover, a strong Foreign Exchange reserve shows a good financial health of the country, strong liquidity, which means an extra authority for paying external debts, which increases investor confidence. These also influence a strong monetary policy, and fixed rate and the power to intervene in the market in case needed. Some Central Banks use these reserves to invest in highly liquid bonds from high-performing countries like the United States and China.

Discover the List of Countries with the highest Foreign Exchange Reserves. Explore types, importance, risks of holding large foreign exchange reserves and how central banks use reserves for stability and trade.

List of Countries with the highest Foreign Exchange Reserves: China, Japan, India and more

India's foreign exchange reserves are near-record high after they rose for the fourth straight week. The Reserve Bank of India's data shows that Forex reserves have hit 642.49 billion dollars.

Foreign exchange reserves hit $642.49 billion

India's foreign exchange reserves has fallen for the second consecutive week. According to the latest Reserve Bank of India data, India's forex reserves stood at $589.138 billion, after falling $4.339 billion in the week ending on May 26.&nbsp;

In the week ending on May 19, India's foreign exchange reserves declined by $6.052 billion to $593.477 billion. This was the biggest weekly fall in the past three months.&nbsp;

Interestingly, India's foreign exchange reserves touched approximately $600 billion around May 21-22. It is to be noted that in October 2021, the country's forex reserves had reached an all-time high of $645 billion.&nbsp;

The recent decline in India's foreign exchange reserves shows that the central bank has been intervening to shore up the Indian rupee, which ended at 82.3 on Friday.

Due to stronger US dollar, the rupee declined by 1.1 percent in the month of May. This was the biggest one-month drop in the Indian rupee this year.&nbsp;

The Indian currency is likely to breach the 83 rupee per dollar mark due to a stronger dollar, reports said. However, a Bloomberg report said that the rupee is unlikely to drop below 83 as the US dollar has started showing signs of weakness.&nbsp;

The latest forex figures come just days before India's central bank is expected to announce its latest monetary policy.

Reports suggest that the RBI will maintain the interest rate at 6.5 percent during its upcoming June 8 announcement, considering the easing of retail inflation in April and the potential for further decline. However, with the Indian rupee hovering near the 83 per dollar mark, the RBI may be forced to hike the interest rate to support&nbsp;the currency.&nbsp;

After the last monetary policy meeting in April, the RBI had paused its rate hike cycle and stayed with the 6.5 percent repo rate. Prior to that the central bank had cumulatively hiked the rates by 2.5 percent since May 2022 in a bid to contain inflation.

India's foreign exchange reserves has fallen for the second consecutive week. According to the latest Reserve Bank of India data, India's forex reserves stood at $589.

India's foreign exchange reserves has fallen for the second consecutive week. According to the latest Reserve Bank of India data, India's forex reserves stood at $589.138 billion, after falling $4.339 billion in the week ending on May 26. In the week ending on May 19, India's foreign exchange reserves declined by $6.052 billion to $593.477 billion. This was the biggest weekly fall in the past three months. Interestingly, India's foreign exchange reserves touched approximately $600 billion around May 21-22. It is to be noted that in October 2021, the country's forex reserves had reached an all-time high of $645 billion. The recent decline in India's foreign exchange reserves shows that the central bank has been intervening to shore up the Indian rupee, which ended at 82.3 on Friday. Due to stronger US dollar, the rupee declined by 1.1 percent in the month of May. This was the biggest one-month drop in the Indian rupee this year. The Indian currency is likely to breach the 83 rupee per dollar mark due to a stronger dollar, reports said. However, a Bloomberg report said that the rupee is unlikely to drop below 83 as the US dollar has started showing signs of weakness. The latest forex figures come just days before India's central bank is expected to announce its latest monetary policy. Reports suggest that the RBI will maintain the interest rate at 6.5 percent during its upcoming June 8 announcement, considering the easing of retail inflation in April and the potential for further decline. However, with the Indian rupee hovering near the 83 per dollar mark, the RBI may be forced to hike the interest rate to support the currency. After the last monetary policy meeting in April, the RBI had paused its rate hike cycle and stayed with the 6.5 percent repo rate. Prior to that the central bank had cumulatively hiked the rates by 2.5 percent since May 2022 in a bid to contain inflation.

India's forex reserves fall for the second consecutive week

In some good news for the Indian economy, the country's foreign exchange reserves jumped to a 11-month high. India's import cover rose by about 7.2 billion dollars to nearly 596 billion dollars in the week that ended on May 5.

India's Forex reserves near the $600 billion mark | World Business Watch

The IMF has raised concern over Bangladesh's economy amid depleting forex reserves. Is Bangladesh heading in the same direction as Pakistan? Molly Gambhir tells you more.

Gravitas: Bangladesh's depleting Forex reserves

India's foreign exchange reserves fell significantly to a one-month low of $566.94 billion in the week ending February 10, marking its biggest weekly decline in 11 months.

The country's import cover in the week prior had dropped by $1.49 billion to $575.27 billion, stalling a three-week rising streak, according to the Reserve Bank of India's weekly data.

The latest dip in FX reserves was due to the Indian central bank selling dollars to shore up the rupee in international markets and stabilise the domestic currency from extreme volatility.

That trend of the Indian central bank intervening in forex markets to defend the rupee has been a phenomenon over the past year.

But why is this important? What does the foreign exchange of a country signify?

Foreign Exchange Reserves are of crucial importance to the functioning of any economy.

They entail all the foreign assets owned by a country's central bank. Foreign assets generate income in foreign currency.

They are stored in the form of gold or cash and are used to maintain the balance of payment and to maintain the country's financial market stability.

In October 2021, India's forex kitty hit an all-time high of $645 billion; however, the trend has reversed and declined as the Indian rupee fell significantly against the US dollar.

According to the RBI data, India's Foreign Currency Assets (FCS) have also fallen by $7.11 billion to $500.59 billion in the latest week.

The FCA differs from the reserves since it considers the effect of appreciation or depreciation of non-U.S. units such as yen, pounds, and euro.

Apart from that, India's Gold Reserves have fallen by $919 million, taking the bullion reserves to $42.86 billion. &nbsp;

The collective trend over the past year aptly showcases the drop in the rupee against the dollar.

The rupee's dramatic fall

The value of the domestic currency declined for the fourth straight week but did not weaken beyond its record low of a touch over 83 per dollar, which would have likely triggered a response by the RBI.

However, despite all the chaos, the Indian rupee has remained relatively stable compared to its Asian peers.

The RBI Governor said that the volatility in the rupee is better than seen in the past, with India's forex reserves in a comfortable position, despite the fall over the past year.

The broader sell-off of most major global currencies in favour of the dollar has hurt the forex reserves of almost every emerging market country, pushing some into a historic economic crisis.

That trend for increased interest in dollar-denominated assets intensified after Russia invaded Ukraine almost a year ago.

The Indian rupee has not been an exception.

The Indian currency fell to multiple record lows and hovered around 83 per dollar from about 74 per dollar before the war on the edge of Europe started in February last year.

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India's foreign exchange reserves fell significantly to a one-month low of $566.94 billion in the week ending February 10, marking its biggest weekly decline in 11 months.

India's foreign exchange reserves fell significantly to a one-month low of $566.94 billion in the week ending February 10, marking its biggest weekly decline in 11 months. The country's import cover in the week prior had dropped by $1.49 billion to $575.27 billion, stalling a three-week rising streak, according to the Reserve Bank of India's weekly data. The latest dip in FX reserves was due to the Indian central bank selling dollars to shore up the rupee in international markets and stabilise the domestic currency from extreme volatility. That trend of the Indian central bank intervening in forex markets to defend the rupee has been a phenomenon over the past year. But why is this important? What does the foreign exchange of a country signify? Foreign Exchange Reserves are of crucial importance to the functioning of any economy. They entail all the foreign assets owned by a country's central bank. Foreign assets generate income in foreign currency. They are stored in the form of gold or cash and are used to maintain the balance of payment and to maintain the country's financial market stability. In October 2021, India's forex kitty hit an all-time high of $645 billion; however, the trend has reversed and declined as the Indian rupee fell significantly against the US dollar. According to the RBI data, India's Foreign Currency Assets (FCS) have also fallen by $7.11 billion to $500.59 billion in the latest week. The FCA differs from the reserves since it considers the effect of appreciation or depreciation of non-U.S. units such as yen, pounds, and euro. Apart from that, India's Gold Reserves have fallen by $919 million, taking the bullion reserves to $42.86 billion. The collective trend over the past year aptly showcases the drop in the rupee against the dollar. The rupee's dramatic fall The value of the domestic currency declined for the fourth straight week but did not weaken beyond its record low of a touch over 83 per dollar, which would have likely triggered a response by the RBI. However, despite all the chaos, the Indian rupee has remained relatively stable compared to its Asian peers. The RBI Governor said that the volatility in the rupee is better than seen in the past, with India's forex reserves in a comfortable position, despite the fall over the past year. The broader sell-off of most major global currencies in favour of the dollar has hurt the forex reserves of almost every emerging market country, pushing some into a historic economic crisis. That trend for increased interest in dollar-denominated assets intensified after Russia invaded Ukraine almost a year ago. The Indian rupee has not been an exception. The Indian currency fell to multiple record lows and hovered around 83 per dollar from about 74 per dollar before the war on the edge of Europe started in February last year. WATCH WION LIVE HERE

India's forex reserves mark the biggest weekly drop in 11 months

India's foreign exchange reserves fell by $8.3 billion to $566.95 billion in the week ended February 10 -- its biggest weekly fall in 11 months. According to data released by RBI on Friday, the reserves are at their lowest level since January 6, 2023.

India's Forex Reserves fall biggest in 11 months

Soon after Bangladesh won its independence in 1971, a key US policy maker Henry Kissinger has famously said that the country will become a basket case. While, Bangladesh has proven Kissinger wrong by its steady success, another South Asian nation has become a basket case here. Yes, you are right we are talking about Pakistan.

Economic crisis worsens in Pakistan, Forex reserves fall to $5.8 billion

As Nepal continues to struggle with dwindling foreign exchange reserves, the South Asian country's government has taken the decision to extend its complete ban on the import of ten different types of products, till the end of August. The Xinhua news agency reported that the prohibition, which was initially enacted in late April, was supposed to last until mid-July, when the current fiscal year came to an end, however it has been extended by one month. As per IANS, the official notice says that the embargo is in place to protect the balance of payments and external financial position, in order to fend off any impending threats to the economy.

Watch |&nbsp;Gravitas: G20 finance ministers huddle amid recession fears

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According to a notice published in the Nepal Gazette on Sunday, until August 30&nbsp;entry will be prohibited&nbsp;for mobile phones priced at&nbsp;more than $300 US and motorcycles with engines larger than 150 cc, as well as for alcoholic beverages, tobacco products, diamonds, colour television sets larger than 32 inches, jeeps, cars, and vans, dolls, playing cards, and snacks.

Talking to Xinhua, senior economist Keshav Acharya explained, "As there has been no improvement in foreign exchange reserves, the government currently has no other options but to impose a ban on the non-essential goods which had contributed to the outflow of foreign currencies."

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/srilankadollarchallenge-sri-lankans-abroad-try-to-save-countrys-economy-via-viral-internet-trend-498161" hreflang="en">#SriLankaDollarChallenge: Sri Lankans abroad try to save country's economy via viral internet trend</a>

He said that despite the impact of this ban on revenue, "we cannot let the country slip in the direction of Sri Lanka by allowing unrestricted import of goods."

According to Nepal Rastra Bank, the country's foreign exchange reserves declined by 19.6 per cent to 9.45 billion US dollars during the first 11 months of the 2021–22 fiscal year. In mid–July 2021, they stood at 11.75 billion US dollars.
</div>

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As Nepal continues to struggle with dwindling foreign exchange reserves, the South Asian country's government has taken the decision to extend its complete ban on the import of ten different types of products, till the end of August.

As Nepal continues to struggle with dwindling foreign exchange reserves, the South Asian country's government has taken the decision to extend its complete ban on the import of ten different types of products, till the end of August. The Xinhua news agency reported that the prohibition, which was initially enacted in late April, was supposed to last until mid-July, when the current fiscal year came to an end, however it has been extended by one month. As per IANS, the official notice says that the embargo is in place to protect the balance of payments and external financial position, in order to fend off any impending threats to the economy. Watch | Gravitas: G20 finance ministers huddle amid recession fears According to a notice published in the Nepal Gazette on Sunday, until August 30 entry will be prohibited for mobile phones priced at more than $300 US and motorcycles with engines larger than 150 cc, as well as for alcoholic beverages, tobacco products, diamonds, colour television sets larger than 32 inches, jeeps, cars, and vans, dolls, playing cards, and snacks. Talking to Xinhua, senior economist Keshav Acharya explained, "As there has been no improvement in foreign exchange reserves, the government currently has no other options but to impose a ban on the non-essential goods which had contributed to the outflow of foreign currencies." Also read | #SriLankaDollarChallenge: Sri Lankans abroad try to save country's economy via viral internet trend He said that despite the impact of this ban on revenue, "we cannot let the country slip in the direction of Sri Lanka by allowing unrestricted import of goods." According to Nepal Rastra Bank, the country's foreign exchange reserves declined by 19.6 per cent to 9.45 billion US dollars during the first 11 months of the 2021–22 fiscal year. In mid–July 2021, they stood at 11.75 billion US dollars. Watch WION LIVE HERE: You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Looking to preserve forex reserves, Nepal extends import ban on ten items

The Nepal government on Tuesday imposed a ban on the import of 10 luxurious goods to ease the crisis of depleting foreign exchange reserves.

In the notice, the Ministry of Industry, Commerce and Supplies said the ban will not apply to those who have completed the banking process before April 30.&nbsp;

The ban has come into effect starting Tuesday and will last until mid-July 2022, the end of the current fiscal year.&nbsp;

As per the notice, cigarettes and tobacco-related products, diamonds have been banned.&nbsp;

Additionally, mobile phone sets, TVs with screens bigger than 32 inches, automobiles like jeeps, cars, vans except for ambulances and hearses, and motorcycles above 250cc are also banned.&nbsp;

Import of toys, alcohol, playing cards and snacks like Lays and Kurkure have also been prohibited.&nbsp;

According to Nepal Rastra Bank statistics, during the eight months of 2021-22, imports increased 38.6 per cent to Rs1.30 trillion compared to an increase of 2.1 per cent a year ago.&nbsp;

The current account deficit remained at Rs.462.93 billion compared to Rs.151.42 billion in the corresponding period of the previous year.&nbsp;

Watch |&nbsp;Low tourism in Nepal during COVID impacts foreign exchange

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The gross foreign exchange reserves also decreased by16.3 per cent to Rs.1171 billion in mid-March 2022 from Rs.1399.03 billion in mid-July 2021.&nbsp;

“In the US dollar terms, the gross foreign exchange reserves decreased 18.5 per cent to 9.58 billion in mid-March 2022 from 11.75 billion in mid-July 2021,” according to the central bank.&nbsp;

The balance of payments (BOP) remained at a deficit of Rs258.64 billion in the review period against a surplus of Rs.68.01 billion in the same period of the previous year.

Earlier, the government had imposed restrictions on the import of other luxury items.&nbsp;

Following this, the traders were told to keep a 100 per cent margin amount to open a letter of credit to import alcoholic drinks, tobacco, silver, furniture, sugar and others.&nbsp;

Nepal heavily relies on remittances, which have also decreased by 3 per cent.

At the same time, the year-no-year consumer price inflation stood at 7.14 per cent in the eighth month of 2021-22 compared to 3.03 per cent a year ago.

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The Nepal government on Tuesday imposed a ban on the import of 10 luxurious goods to ease the crisis of depleting foreign exchange reserves. In the notice, the Ministry of Industry, Commerce and Supplies said the ban will not apply to those who have completed the banking process before April 30.

The Nepal government on Tuesday imposed a ban on the import of 10 luxurious goods to ease the crisis of depleting foreign exchange reserves. In the notice, the Ministry of Industry, Commerce and Supplies said the ban will not apply to those who have completed the banking process before April 30. The ban has come into effect starting Tuesday and will last until mid-July 2022, the end of the current fiscal year. As per the notice, cigarettes and tobacco-related products, diamonds have been banned. Additionally, mobile phone sets, TVs with screens bigger than 32 inches, automobiles like jeeps, cars, vans except for ambulances and hearses, and motorcycles above 250cc are also banned. Import of toys, alcohol, playing cards and snacks like Lays and Kurkure have also been prohibited. According to Nepal Rastra Bank statistics, during the eight months of 2021-22, imports increased 38.6 per cent to Rs1.30 trillion compared to an increase of 2.1 per cent a year ago. The current account deficit remained at Rs.462.93 billion compared to Rs.151.42 billion in the corresponding period of the previous year. Watch | Low tourism in Nepal during COVID impacts foreign exchange The gross foreign exchange reserves also decreased by16.3 per cent to Rs.1171 billion in mid-March 2022 from Rs.1399.03 billion in mid-July 2021. “In the US dollar terms, the gross foreign exchange reserves decreased 18.5 per cent to 9.58 billion in mid-March 2022 from 11.75 billion in mid-July 2021,” according to the central bank. The balance of payments (BOP) remained at a deficit of Rs258.64 billion in the review period against a surplus of Rs.68.01 billion in the same period of the previous year. Earlier, the government had imposed restrictions on the import of other luxury items. Following this, the traders were told to keep a 100 per cent margin amount to open a letter of credit to import alcoholic drinks, tobacco, silver, furniture, sugar and others. Nepal heavily relies on remittances, which have also decreased by 3 per cent. At the same time, the year-no-year consumer price inflation stood at 7.14 per cent in the eighth month of 2021-22 compared to 3.03 per cent a year ago. WATCH WION LIVE HERE

Nepal bans import of luxury items amid depleting forex reserves

After Sri Lanka, Nepal seems to be staring at an economic crisis. The country has put a curb on the imports of non-essential goods, including cars, cosmetics, and gold, after its foreign currency reserves dropped.

Nepal cuts down imports of luxury goods

Nepal has banned the imports of luxury items. This comes after the country's Central Bank Governor was suspended. Is Nepal staring at an economic crisis? Molly Gambhir tells you.

Gravitas: Why was the central bank governor sacked in Nepal?

After Sri Lanka, Nepal seems to be staring into an impending economic crisis. the country has put a curb on the imports of non-essential goods, including cars, cosmetics, and gold, after its foreign currency reserves dropped.

Nepal bans imports of luxury items amid dwindling forex reserves

Sri Lanka's financial crisis is worsening. According to the Central Bank data, country's gross foreign currency reserves have fallen over 24% to 2.36 billion US$ by end of January.

Trouble continues for Sri Lanka's finance sector as forex fall by 24%

In a bid to increase its depleting forex reserves, the Sri Lankan government has reportedly decided to lease out about 50 valuable plots to foreign investors for development projects.

Sri Lankan government to lease 50 valuable plots to foreign investors amid economic crisis

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