Kathmandu, Sept. 26: The balance of payments (BOP) in the country remained at a surplus of Rs 40.90 billion in the first month of the current fiscal year 2081/082 BS, according to the Nepal Rastra Bank (NRB).
The BOP surplus was Rs 36.43 billion in the same period of the previous year. In the US Dollar terms, the BOP remained at a surplus of 305.1 million in the review period compared to a surplus of 276.3 million in the same period of the previous year, the NRB stated in the Current Macroeconomic and Financial Situation report released today.
In the same period of the previous year, net capital transfer amounted to Rs.272.6 million and foreign direct investment inflows
(Equity only) amounted to Rs.2.65 billion.
Balance of Payments (BOP) remained at a surplus of Rs. 40.90 billion in the review period compared to a surplus of Rs. 36.43 billion in the same period of the previous year. In the US Dollar terms, the BOP remained at a surplus of 305.1 million in the review period compared to a surplus of 276.3 million in the same period of the previous year.
Remittances Inflow Increased by 18 percent
Remittance inflows increased 18.0 percent to Rs.136.93 billion in the review period compared to an increase of 22.8 percent in the same period of the previous year. In the US Dollar terms, remittance inflows reached 1.02 billion in the review period which was 879.8 million 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 36,928 and taking approval for renew entry stands at 22,647. In the previous year, such numbers were 39,152 and 16,423 respectively.
Foreign Exchange Reserves Reached US$ 15.58 billion
Gross foreign exchange reserves increased 2.5 percent to Rs.2092.22 billion in mid-August 2024 from Rs.2041.10 billion in mid-July 2024. In the US dollar terms, the gross foreign exchange reserves increased 2.0 percent to 15.58 billion in mid-August 2024 from 15.27 billion in mid-July 2024.
Of the total foreign exchange reserves, reserves held by NRB increased 1.9 percent to Rs.1883.42 billion in mid-August 2024 from Rs.1848.55 billion in mid-July 2024. Reserves held by banks and financial institutions (except NRB) increased 8.4 percent to Rs.208.79 billion in mid-August 2024 from Rs.192.55 billion in mid-July 2024. The share of Indian currency in total reserves stood at 22.6 percent in mid-August 2024.
Foreign Exchange Adequacy Available for 13.5 months
Based on the imports of first month of 2024/25, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 16.7 months, and merchandise and services imports of 13.5 months.
The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 36.7 percent, 112.5 percent and 30.3 percent respectively in mid-August 2024. Such ratios were 35.8 percent, 108.6 percent and 29.3 percent respectively in mid-July 2024. #nepal #NRB
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