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Country receives Rs 809.89 billon in remittance, inflation high



NRB
Nepal Rastra Bank (file photo)

KATHMANDU: The country has received Rs 809.89 billion in remittance in the first ten months of fiscal year 2020/21, according to the Nepal Rastra Bank (NRB).

Releasing the “Current Macroeconomic and Financial Situation” of the country based on ten month’s data ending mid-May, 2020/21, the NRB stated that remittance inflows increased 19.2 per cent in the review period against a decrease of 6.3 per cent in the same period of the previous year.

In the US Dollar terms, remittance inflows increased 16.1 per cent to 6.87 billion in the review period against a decrease of 7.6 per cent in the same period of the previous year.

According to the NRB, the number of Nepali workers (institutional and individual-new and legalized) taking approval for foreign employment decreased 60.3 per cent in the review period. It had decreased 2.7 per cent in the same period of the previous year.

The number of Nepali workers (Renew entry) taking approval for foreign employment decreased 49.0 per cent in the review period. It had decreased 24.6 per cent in the same period of the previous year.

The NRB stated that the current account remained at a deficit of Rs 247.08 billion in the review period compared to a deficit of Rs 96.18 billion in the same period of the previous year.

In the US Dollar terms, the current account registered a deficit of 2.11 billion in the review period compared to a deficit of 855.9 million in the same period of the previous year.

Likewise, the Balance of Payments (BOP) registered a surplus of Rs 7.75 billion in the review period as compared to a surplus of Rs 120.90 billion in the same period of the previous year.

In the US Dollar terms, the BOP recorded a surplus of 55.4 million in the review period compared to a surplus of 1.01 billion in the same period of the previous year.

Import/Exports

Also during the period, total export of goods has crossed 100 billion rupees. Goods worth Rs. 108.48 billion was exported during the period, which is an increase by 32.2 per cent compared to the previous financial year.

Exports increased to India by 35.8 per cent and to other countries by 25.3 per cent. Soybean oil, cardamom, jute goods, polyester thread, woolen carpet were among the goods that were exported.

Likewise, import has increased by 22.3 per cent in the same period, with the amount equaling worth Rs. 1.2 trillion.

Major highlights:

  • CPI-based Inflation remained 3.65 percent on y-o-y basis.
  • Imports increased 22.3 percent and exports increased 32.2 percent.
  • Remittances increased 19.2 percent in NPR terms and 16.1 percent in USD terms.
  • Balance of Payments remained at a surplus of Rs.7.75 billion.
  • Gross foreign exchange reserves stood at USD 11.87 billion.
  • Federal Government spending amounted to Rs.824.81 billion and revenue collection Rs.761.00 billion.
  • Broad money (M2) expanded 15.4 percent. On y-o-y basis, M2 expanded 23.4 percent.
  • Deposits at BFIs increased 14.3 percent and claims on the private sector increased 23.6 percent.
  • On y-o-y basis, deposits increased 22.2 percent and claims on the private sector 23.1 percent.

According to NRB, the price of ghee and oil; meat and fish; non- alcoholic drinks and tobacco products sub-groups rose 28.20 percent, 17.12 percent, 9.85 percent and 9.84 percent respectively on y-o-y basis.

The bank says, “The y-o-y wholesale price inflation stood at 8.05 percent in the review month compared to 5.16 percent a year ago. The y-o-y wholesale price of consumption goods, intermediate goods and capital goods increased 7.80
percent, 8.98 percent and 3.62 percent respectively. The wholesale price of construction materials increased 8.44 percent in the review month.”


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