Nepal improves its balance of payments, gains a surplus of $ 2.21 billion in FY 2022/23

Published On: August 19, 2023 08:49 PM NPT By: Republica | @RepublicaNepal

KATHMANDU, Aug 19: Nepal’s balance of payments (BoP) stood at a surplus of Rs 290.52 billion in the last fiscal year.

According to a report of Nepal Rastra Bank (NRB), the country’s BoP improved in the fiscal year 2022/23 with a surplus of US $2.21 billion compared to that of the fiscal year 2021/22 when the BoP was in a negative balance of US $2.15 billion.

The BoP records a country’s financial transactions with the rest of the world under three subheadings — current account, capital account and financial account. It is a major indicator to show a country’s net balance in terms of foreign currency reserves, which is an important factor for import-based countries like Nepal.

The NRB records show that the current account deficit also minimized during the review period. In the last fiscal year, the country had a current account deficit of Rs 72.16 billion, a decline from the negative balance of Rs 623.38 billion in the previous fiscal year.