KATHMANDU, Sept 16: Nepal’s net financial outflows slowed in the first month of the current fiscal year, thanks to a rise in remittance inflow, decline in trade deficit and increase in net transfer.
According to ‘Current Macroeconomic and Financial Situation of Nepal’ unveiled by Nepal Rastra Bank (NRB) on Thursday, the country recorded balance of payments (BoP) at a deficit of Rs 22.63 billion during one month of mid-July and mid-August of the current fiscal year. The BoP was in deficit of Rs 38.75 billion in the same period of the fiscal year 2021/22. In US dollar terms, the BoP remained at a deficit of USD 177.68 million in the review period compared to a deficit of USD 325.53 million in the same period of the last year.
Balance of payment, current account continue to turn deficit
The NRB records show that remittance inflows increased 20.3 percent to Rs 92.21 billion in the review period against a decrease of 17.4 percent in the same period of the last year. Likewise, the net transfer increased 18.4 percent to Rs 101.69 billion in the review period.
Nepal also recorded a decline in trade deficit by 10.4 percent to Rs 116.48 billion in the first month of 2022/23. The merchandise imports decreased 12.9 percent to Rs 131.29 billion against an increase of 75.7 percent during the review period a year ago.
