NRB says, remittance inflow increased by 20 percent

Kathmandu: The Nepal Rastra Bank (NRB) has said that the remittances increased by 20.3 percent in NPR terms. According to NRB, Nepal has received Rs.92.21 billion in the review period against a decrease of 17.4 percent in the same period of the previous year.

In the US Dollar terms, remittance inflows increased 12.5 percent to 724.05 million in the review period against an decrease of 16.8 percent in the same period of the previous year.

Number of Nepali workers (institutional and individual-new) taking approval for foreign employment increased 222.8 percent to 44,540 in the review period. The number of Nepali workers (Renew entry) taking approval for foreign employment increased 75.4 percent to 20,390 in the review period. It had increased 286.1 percent in the same period of the previous year.

According to a report on Current Macroeconomic and Financial Situation of Nepal (Based on First Months’ Data Ending Mid-August, 2022/23), imports decreased by 12.9 percent, exports decreased by 28.7 percent and trade deficit decreased 10.4 percent.

Current Account and Balance of Payments

The current account remained at a deficit of Rs.16.26 billion in the review period compared to a deficit of Rs.47.29 billion in the same period of the previous year. In the US Dollar terms, the current account registered a deficit of 127.68 million in the review period compared to deficit of 397.36 million in the same period last year.

In the review period, capital transfer increased 17.7 percent to Rs.800.34 million and net foreign direct investment (FDI) remained a negative of Rs.1.40 billion. In the same period of the previous year, capital transfer and net FDI amounted to Rs.679.72 million and Rs.480.57 million respectively.

Balance of Payments (BOP) remained at a deficit of Rs.22.63 billion in the review period compared to a deficit of Rs.38.75 billion in the same period of the previous year. In the US Dollar terms, the BOP remained at a deficit of 177.68 million in the review period compared to a deficit of 325.53 million in the same period of the previous year.

Foreign exchange reserves decreased by 1.5 percent

Gross foreign exchange reserves decreased 1.5 percent to Rs.1197.85 billion in mid-August 2022 from Rs.1215.80 billion in mid-July 2022. In the US dollar terms, the gross foreign exchange reserves decreased 1.2 percent to 9.42 billion in mid-August 2022 from 9.54 billion in mid-July 2022.