KATHMANDU: The Nepal Rastra Bank (NRB), the central bank of Nepal, has said that remittance inflow of Rs 495 billion has been recorded in the country in the first six months of the current FY 2020/21.
Issuing the current Macroeconomic and Financial Situation of Nepal on Monday, NRB has stated that remittance inflow increased by 11.1 per cent to Rs 495.31 billion, an increase of 0.6 percent in the same period of the previous year.
In US Dollars, remittance inflow increased by 6.7 percent to US$ 4.19 billion in the review period compared to an increase of 0.9 percent in the same period of the previous year.
However, the number of Nepali workers taking labour permit for foreign employment decreased by 77.6 percent in the review period. It had increased by 17.7 percent in the same period of the previous year.
The number of Nepali workers seeking labour permit for foreign employment decreased by 68.9 percent in the review period. It had increased by 0.5 percent in the same period of the previous year.
Similarly, the NRB has said that net transfer increased 8.9 percent to Rs 549.51 billion in the first six months. Such transfer had decreased by 0.4 percent in the same period of the previous year.
In the review period, capital transfer decreased by 8.1 percent to Rs 6.85 billion and net foreign direct investment (FDI) decreased by 37.2 percent to Rs 7.66 billion.
In the same period of the previous year, capital transfer and net FDI amounted to Rs 7.46 billion and Rs.12.20 billion respectively, the central bank stated.
According to the NRB, the current account remained at a deficit of Rs 49.53 billion in the review period compared to a deficit of Rs 79.65 billion in the same period of the previous year.
In the US Dollar terms, the current account registered a deficit of 422.7 million in the review period.
Furthermore, merchandise exports increased 6.1 percent to Rs 60.80 billion in the first six months of the current fiscal year compared to an increase of 26.1 percent in the same period of the previous year.
Destination-wise, exports to India and other countries increased by 8.4 percent and 4.0 percent respectively whereas exports to China decreased by 50.0 percent. Exports of cardamom, polyster yarn and threads, jute goods, pashmina, noodles, among others, increased whereas exports of palm oil, pulses, zinc sheet, juice, wire, among others, decreased in the review period.
Likewise, the balance of payments (BOP) registered a surplus of Rs 124.92 billion as compared to a surplus of Rs 26.65 billion in the same period of the previous year.
The NRB mentioned that merchandise imports decreased 4.8 percent to Rs 661.25 billion compared to a decrease of 4.0 percent a year ago. Imports from India increased 3.5 percent whereas imports from China and other countries decreased 18.5 percent, and 17.4 percent respectively.
