Kathmandu, Dec 12: The Nepal Rastra Bank, the central bank of Nepal, has said that the remittance inflows increased 9.1 percent to Rs.521.63 billion in the review period compared to an increase of 22.5 percent in the same period of the previous year. In the US Dollar terms, remittance inflows reached 3.87 billion in the review period which was 3.60 billion in the same period of the previous year.
According to the Current Macroeconomic and Financial Situation of Nepal (Based on Four Months Data Ending Mid-November, 2024/25), net secondary income (net transfer) reached Rs.568.26 billion in the review period compared to Rs.521.43 billion in the same period of the previous year.
The number of Nepali workers, both institutional and individual, taking first-time approval for foreign employment stands at 147,478 and taking approval for renew entry stands at 94,105. In the previous year, such numbers were 137,475 and 68,841 respectively.
Current Account and Balance of Payments
The current account remained at a surplus of Rs.143.42 billion in the review period compared to a surplus of Rs.97.10 billion in the same period of the previous year. In the US Dollar terms, the current account registered a surplus of 1.06 billion in the review period against a surplus of 730.58 million in the same period last year.
In the review period, net capital transfer amounted to Rs.2.47 billion. In the same period of the previous year, such transfer amounted to Rs.1.59 billion. Similarly, in the review period, Rs.5.76 billion foreign direct (Equity only) investment was received. In the same period of the previous year, such foreign direct (Equity only) investment inflows amounted to Rs.3.65 billion.
Balance of Payments (BOP) remained at a surplus of Rs. 205.83 billion in the review period compared to a surplus of Rs. 150.24 billion in the same period of the previous year. In the US Dollar terms, the BOP remained at a surplus of 1.53 billion in the review period compared to a surplus of 1.13 billion in the same period of the previous year.
Foreign Exchange Reserves
Gross foreign exchange reserves increased 10.5 percent to Rs.2255.35 billion in mid-November 2024 from Rs.2041.10 billion in mid-July 2024. In the US dollar terms, the gross foreign exchange
reserves increased 9.4 percent to 16.70 billion in mid November 2024 from 15.27 billion in mid-July 2024.
Of the total foreign exchange reserves, reserves held by NRB increased 8.6 percent to Rs.2008.15 billion in mid-November 2024 from Rs.1848.55 billion in mid-July 2024. Reserves held by banks and financial institutions (except NRB) increased 28.4 percent to Rs.247.20 billion in mid-November 2024 from Rs.192.55 billion in mid-July 2024. The share of Indian currency in total reserves stood at 22 percent in mid-November 2024.
Foreign Exchange Adequacy Indicators
Based on the imports of four months of 2024/25, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 18 months, and merchandise
and services imports of 15.1 months.
The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 39.5 percent, 126 percent and 31.4 percent respectively in mid-November 2024. Such ratios were 35.8 percent, 108.6 percent and 29.3 percent respectively in mid-July 2024.
Inflation
Consumer Price Inflation (CPI)
The y-o-y consumer price inflation stood at 5.60 percent in mid-November 2024 compared to 5.38 percent a year ago. Food and beverage inflation stood at 9.10 percent whereas non-food and service inflation stood at 3.65 percent in the review month. During the same period in the previous year, the price indices of these groups had increased 5.98 percent and 4.99 percent respectively.
Under the food and beverage category, y-o-y price index of vegetable sub-category increased 33.99 percent, pulses and legumes 10.78 percent, cereal grains & their products 10.15 percent and ghee & oil 9.29 percent. However, the y-o-y price index of spices sub-category decreased 1.41 percent, sugar & sugar products 1.28 percent and meat & fish 0.02 percent.
Under the non-food and services category, y-o-y price index of miscellaneous goods and services sub-category increased 10.41 percent, alcoholic drinks 6.35 percent, clothes and footwear 4.57% and tobacco products 4.24 percent.
During the review month, y-o-y price index in rural areas and in urban areas increased 6.19 percent and 5.39 percent respectively.
Based on provinces, in the review month, y-o-y consumer price inflation in Koshi is 7.19 percent, Madhesh 5.72 percent, Bagmati 5.35 percent, Gandaki 4.69 percent, Lumbini 5.10 percent, Karnali
3.21 percent, and Sudurpashchim 6.57 percent.
In the review month, y-o-y consumer price inflation in the Kathmandu Valley, Terai, Hill and Mountain region surged to 5.42 percent, 5.72 percent, 5.15 percent and 6.78 percent respectively. #NRB #nepal
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