Despite the decrease in the number of people going abroad in the current fiscal year, remittance inflow in the country has increased at a sustained rate of around 20 percent due to the robust exchange rate of the US dollar and few other reasons.
The country has received Rs 1198.6 billion in remittance in the first ten months of the current fiscal year 2023/24.
Releasing the current macroeconomic and financial situation based on ten months of data of FY 2023/24 on Monday, the Nepal Rastra Bank (NRB) said remittance inflows increased 19.2 percent compared to an increase of 23.4 percent in the same period of the previous year. “In the US Dollar terms, remittance inflows increased 17.1 percent to 9.02 billion in the review period compared to an increase of 13.4 percent in the same period of the previous year,” the central bank said.
During the period, the number of Nepali workers taking approval for foreign employment stood at 374,887 and those taking approval for renew entry stood at 237,893. In the previous year, the numbers were 421,279 and 238,976 respectively.
The consumer price inflation moderated to 4.4 percent in mid-May 2024 compared to 7.41 percent a year ago. Food and beverage category inflation stood at 6.27 percent whereas non-food and service category inflation stood at 2.96 percent in the review month.
According to the central bank, the current account has remained at a surplus of Rs 193.25 billion during the review period against a deficit of Rs 63.74 billion in the same period of the previous year.
In the review period, the net foreign direct investment (FDI) remained positive at Rs.6.98 billion. In the same period of the previous year, the net FDI was Rs 4.36 billion, the NRB stated in its report.
Similarly, the Balance of Payments (BOP) remained at a surplus of Rs 392.64 billion in the review period against a surplus of Rs 209.49 billion in the same period of the previous year.
Despite improvement than the last fiscal year, the merchandise exports continued to decrease in the review period of the current fiscal year too. The merchandise exports decrease by 3.6 percent to Rs 126.17 billion compared to a decrease of whooping 24.5 percent in the same period of the previous year.
Nepal’s exports to India decreased 5.6 percent, whereas exports to China increased 68.1 percent, the central bank stated.
Likewise, imports decreased 2.4 percent to Rs 1303.36 billion compared to a decrease of 16.8 percent a year ago. According to the NRB, imports from India and other countries decreased 3.4 percent and 20.8 percent respectively while imports from China increased 34.4 percent.
It said that exports of zinc sheet, particle board, juice, readymade garments, and oil cakes among others increased whereas exports of palm oil, soyabean oil, woolen carpets and tea among others decreased.
Imports of transport equipment, vehicle and other vehicle spare parts, readymade garments, aircraft spare parts, electrical equipment, and textiles among others increased whereas imports of crude soyabean oil, gold, hot rolled sheet in coil, crude palm oil, rice/paddy among others decreased.
The gross foreign exchange reserves increased 26.2 percent reaching Rs 1942.4 billion in mid-May 2024 which was Rs 1539.36 billion in mid-July 2023. In the US dollar terms, the gross foreign exchange reserves increased 24.2 percent to 14.54 billion in mid-May 2024 from 11.71 billion in mid-July 2023.
