Drop significantly from 797.62M USD in October 2022 to 508.02M USD in September 2023
In a recently released report by Royal Monetary Authority (RMA), the Foreign Exchange Reserves for the year 2023 have shown significant fluctuations. The total external reserves have undergone a marked downturn, witnessing a substantial drop from 797.62 million USD in October 2022 to 508.02 million USD in September 2023.
This represents a noteworthy decrease of almost 36% over the 12-month period, signaling potential challenges in the economic environment.
The Foreign Currency Reserves, comprising Convertible Currency, Indian Rupee (INR), and Monetary Gold, align with the overall trend, recording a decline from 759.16 million USD in October 2022 to 467.05 million USD in September 2023. This reflects a notable 38% decrease, raising concerns about the country’s financial stability.
Special Drawing Right (SDR) Holdings experienced minor fluctuations but maintained relative stability. The figures ranged from 32.09 million USD in October 2022 to 34.21 million USD in September 2023, providing a potential buffer in the face of economic uncertainties.
The Reserve Tranche Position in the International Monetary Fund (IMF) exhibited a marginal decrease from 6.37 million USD in October 2022 to 6.75 million USD in September 2023, hinting at challenges in navigating international financial obligations.
The report emphasizes the revision of the external reserve format since 2010. This revision aims to offer a more accurate and transparent representation of the country’s financial standing, ensuring precision in financial assessments.
Meanwhile, local economists weigh in on the situation, attributing the decline in foreign exchange reserves to a myriad of factors. Changes in global trade dynamics, geopolitical tensions, and fluctuations in commodity prices are identified as primary contributors to this economic shift.
A local economist emphasizes, “The decrease in reserves may impact the country’s ability to manage its external obligations and could lead to adjustments in economic policies to stabilize the situation.”
By Kinley Yonten
