Remittances reach Rs 2.15 trillion in Shrawan, forex reserves at Rs 35.17 trillion, inflation at 5.96%
According to the latest report from Nepal Rastra Bank, remittance inflows increased by 21.2% to Rs 215.05 billion in the first month of fiscal year 2083/84 (Shrawan). Foreign exchange reserves also rose to Rs 3,946.23 billion, while annual consumer inflation reached 5.96%.
Kathmandu. According to the data for the first month of fiscal year 2083/84 (Shrawan) published by Nepal Rastra Bank, both remittance inflows and foreign exchange reserves have increased. However, inflation has also risen sharply.
According to the report, remittance inflows increased by 21.2 percent to Rs 215.05 billion in Shrawan. In the same period last year, such inflows had increased by 29.9 percent. In US dollars, remittance inflows rose by 10.2 percent to USD 1.40 billion, compared to a 25.0 percent increase in the previous year.
Total foreign exchange reserves, which stood at Rs 389.767 billion at the end of Ashad 2083, increased by 1.2 percent to Rs 394.623 billion at the end of Shrawan 2083. Of this, the reserves held by the central bank increased by 1.3 percent to Rs 351.799 billion, up from Rs 347.319 billion at the end of Ashad.
On the trade front, total merchandise exports increased by 61.7 percent to Rs 38.70 billion in Shrawan. In the same period last year, exports had increased by 95.7 percent. Total merchandise imports rose by 31.0 percent to Rs 187.44 billion, compared to an 11.4 percent increase in the previous year.
In the first month, the total merchandise trade deficit widened by 24.9 percent to Rs 148.74 billion. In the same period last year, the deficit had increased by 2.5 percent.
During the review period, the current account remained in surplus of Rs 94.59 billion, compared to a surplus of Rs 78.29 billion in the same period last year. The balance of payments remained in surplus of Rs 90.34 billion, compared to a surplus of Rs 89.30 billion in the previous year.
Based on the imports of the first month of the current fiscal year, the foreign exchange reserves held by the banking sector appear sufficient to cover 21.8 months of merchandise imports and 18.8 months of merchandise and services imports.
Meanwhile, inflation has surged. Annual point-to-point consumer inflation stood at 5.96 percent in Shrawan 2083, compared to 1.68 percent in the same month last year.