Kathmandu, Nov 19: The Nepal Rastra Bank, the central bank of Nepal, has said that the remittance inflows increased 11.5 percent to Rs.407.31 billion in the first three months of the current fiscal year 2024/25 compared to an increase of 25.8 percent in the same period of the previous year.
In the US Dollar terms, remittance inflows reached 3.04 billion in the review period which was 2.76 billion in the same period of the previous year.
Net secondary income (net transfer) reached Rs. 442.44 billion in the review period compared to Rs.404.07 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 110,654 and taking approval for renew entry stands at 59,939. In the previous year, such numbers were 113,397 and 49,297 respectively.
Current Account and Balance of Payments
The current account remained at a surplus of Rs. 111.87 billion in the review period compared to a surplus of Rs.59.65 billion in the same period of the previous year.
In the US Dollar terms, the current account registered a surplus of 834 million in the review period against a surplus of 449.40 million in the same period last year.
In the review period, net capital transfer amounted to Rs.2 billion and foreign direct investment inflow (Equity only) remained at Rs.4.81 billion. In the same period of the previous year, net capital transfer amounted to Rs.1.15 billion and foreign direct investment inflows (Equity only) amounted
to Rs.3.38 billion.
Balance of Payments (BOP) remained at a surplus of Rs. 184.99 billion in the review period compared to a surplus of Rs. 101.66 billion in the same period of the previous year.
Dollar terms, the BOP remained at a surplus of 1.38 billion in the review period compared to a surplus of 766.80 million in the same period of the previous year.
Foreign Exchange Reserves
Gross foreign exchange reserves increased 9.4 percent to Rs.2232.28 billion in mid-October 2024 from Rs.2041.10 billion in mid-July 2024. In the US dollar terms, the gross foreign exchange reserves increased 8.7 percent to 16.60 billion in mid October 2024 from 15.27 billion in mid-July 2024.
Of the total foreign exchange reserves, reserves held by NRB increased 7.5 percent to Rs.1988 billion in mid-October 2024 from Rs.1848.55 billion in mid-July 2024.
Reserves held by banks and financial institutions (except NRB) increased 26.9 percent to Rs.244.27 billion in mid-October 2024 from Rs.192.55 billion in mid-July 2024.
The share of Indian currency in total reserves stood at 21.9 percent in mid-October 2024.
Foreign Exchange Adequacy Indicators
Based on the imports of three months of 2024/25, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 17.6 monthss, and merchandise and services imports of 14.6 months.
The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 39.1 percent, 121.9 percent and 30.9 percent respectively in mid October 2024. Such ratios were 35.8 percent, 108.6 percent and 29.3 percent respectively in mid-July 2024. #nrb #nepal
Full Report
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