Inflation Decreased, Remittances Increased by 22.7 Percent: NRB

Inflation Decreased, Remittances Increased by 22.7 Percent: NRB

July 11, 2023, 8:04 a.m.

Nepal Rastra Bank said that the current economic indicators of the country are positive. Nepal Rastra Bank has published the data of 11 months of the current financial year which shows that the economy is positive in the current economic and financial situation of the country.

Although it is said that the crisis is approaching due to problems and challenges in the country's economy, the 11-month statistics released by the National Bank show that it is positive.

Annual consumer inflation has decreased by 1.73 percent in May of the current year. Compared to the same period last year, the price has decreased. Inflation in May this year is 6.83 percent. In the same month of the previous year, such inflation was 8.56 percent.

Similarly, remittances increased by 22.7 percent in Nepali rupees and 13 percent in US dollars, according to the bank. Similarly, the research situation is also seen in savings.

Likewise, the merchandise trade deficit has decreased by 15.2 percent. Imports decreased by 16 percent, exports by 22.7 percent and total merchandise trade deficit by 15.2 percent. Foreign exchange reserves increased by 21.8 percent.

At the end of June of the current fiscal year, the total foreign exchange reserves, which were equal to 12 trillion 15 billion 800 million, increased by 21.8 percent and reached 14 trillion 80 billion 87 million by the end of May.

The deposit collection of banks and financial institutions has increased by 8.8 percent and loans to the private sector have increased by 3.4 percent, according to the Rastra Bank.

In the eight months of the current financial year, the price increase in Kathmandu Valley is 7.19 percent, in Terai 6.93 percent, in the mountains 6.28 percent and in the Himalayas 6.39 percent. In the month of June 2079, inflation was 8.32 percent, 8.29 percent, 9.28 percent and 8.92 percent respectively in these areas.

Remittances have exceeded 11 trillion rupees in the month of May of the current financial year. According to the data of 11 months of the current financial year, the remittance inflow increased by 22.7 percent and reached 11.12 billion 52 million. Remittance inflows increased by 4.1 percent over the same period last year. Remittance inflows in US dollars increased by 13.0 percent to 8.51 billion. In the previous year, such flow had increased by 1.8 percent.

In the last 11 months, the number of Nepalese who took the final work permit (institutional and individual-new) for foreign employment increased by 46.6 percent and reached 459,450. The number of Nepalis who re-take labor permits for foreign employment increased by 0.5 percent to 260,262. This number increased by 208.3 percent in the same period of the previous year.

According to Nepal Rastra Bank, commodity exports have decreased by 22.7 percent in 11 months. In which the import of goods has remained at 14 trillion 3 billion 59 billion. During the same period of the previous year, such exports had increased by 53.3 percent. While exports to India decreased by 32.2 percent, exports to China increased by 106.7 percent.

In the 11th month of the current financial year, while the exports of zinc seats, particle board, cardamom, woolen carpets, ready-made garments have increased, the exports of soya bean oil, palm oil, cotton, clothes, gold and silver goods and jewelery have decreased.

Similarly, in the eleven months of the financial year, the total import of goods decreased by 16 percent and remained at 14 trillion 80 billion 98 billion. Such imports increased by 27.5 percent during the same period last year. According to the country from which goods are imported, there has been a decrease of 14.8 percent from India, 17.1 percent from China and 18.5 percent from other countries.

In the eleven months of the financial year 2079/80, the total merchandise trade deficit decreased by 15.2 percent and remained at 13 trillion 37 billion 39 billion. Such losses had increased by 25 percent during the same period of the previous year. During the review period, the export-import ratio was 9.7 percent. In the same period of the previous year, this ratio was 10.5 percent.

Similarly, according to Nepal Rastra Bank, the current account has a deficit of 69.40 billion rupees till the end of May. During the same period of the previous year, the current account was in deficit by 5 trillion 92 billion 14 crores. In the same period of the previous year in US dollars, the current account has a deficit of 4 billion 93 million, up to the end of May, it has a deficit of 536 million.

Capital transfer decreased by 22.5 percent to 7 billion 35 million by the end of May. Net foreign direct investment has reached 4.65 billion. During the same period of the previous year, capital transfer was 9.49 billion and net foreign direct investment was 17.35 billion.

As of the end of May, the current account balance is 2.28 billion 98 billion in surplus. During the same period of the previous year, the balance sheet was at a loss of 2.69 billion 81 crores. In the same period of the previous year in US dollars, the net profit of 2.26 billion was in deficit, now it is in surplus of 1.74 billion.

Foreign exchange reserves have increased by 21.8 percent in the month of May. At the end of June of the current financial year, the total foreign exchange reserves, which were equal to 12 trillion 15 billion 800 million, increased by 21.8 percent and reached 14 trillion 80 billion 87 million by the end of May 2080.

Such reserves in US dollars were 9.54 billion at the end of June 2079 and increased by 18.5 percent to 11.30 billion at the end of May. Out of the total foreign exchange reserves, the reserve in Nepal Rastra Bank was 10 trillion 56 billion 39 crores at the end of June 2079 and increased by 25.1 percent to 13 trillion 21 billion 25 crores at the end of May 2080.

Foreign exchange reserves with banks and financial institutions except Nepal Rastra Bank were Rs. 159 billion 41 crores at the end of June 2079 and increased by 0.1 percent to Rs. 159 billion 63 million has reached. The share of Indian currency in the total foreign exchange reserves at the end of May 2080 was 22.9 percent.

In the eleven months of the financial year 2079/80, the total expenditure of the federal government is 11 trillion 76 billion 70 million. During the review period, current expenditure was 8 trillion 77 billion 39 crore, capital expenditure was 15 trillion 3 billion 8 crore and financial arrangement expenditure was 145 billion 59 crore. During the review period, the total revenue mobilization of the federal government was 8 trillion 36 billion 85 million. Under this, tax revenue is 759 billion and non-tax revenue is 77.85 billion.

Similarly, during the review period, loans from banks and financial institutions to the private sector increased by 157.36 billion (3.4 percent). In the same period of the previous year, such loans increased by 552 billion 71 crores (13.5 percent). On an annual basis, the credit flow from banks and financial institutions to the private sector increased by 3.0 percent at the end of May 2080.

The NEPSE index, which was 1996.26 at the end of May 2079, has remained at 2042.07 at the end of May 2080. Securities market capitalization has been maintained at 29 trillion 86 billion 20 million. At the end of May 2079, the market capitalization was 28 trillion 44 billion 11 million.

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