KATHMANDU: The remittance flow into the country has seen a rise despite the impact of the COVID-19 pandemic.

The remittance flow is seen increasing as the formal channels are made stronger after controlling the illegal channels. According to Nepal Rastra Bank (NRB) report released Thursday, remittances have increased 9.8 percent in Nepali rupee and 8.2 percent in USD. The annual average inflation remained at 3.60 percent in the country.

The NRB further mentioned that imports increased by 28.7 percent while exports increased by 44.4 percent in the period. In the previous year, imports had decreased by 15.6 percent and exports increased by 0.6 percent. The NRB said that the balance of payments remained at a surplus of Rs.1.23 billion compared to a surplus of Rs.282.41 billion last year.

Similarly, the gross foreign exchange reserves stood at USD 11.75 billion. This level of foreign exchange reserve is sufficient to cover the merchandise and services imports for 10.2 months, NRB said.

The broad money (M2) expanded 21.8 percent and deposits at Banks and Financial Institutions expanded 21.4 percent and claims on the private sector expanded 26.4 percent. Total deposits at BFIs stood at Rs.4663 billion and claims on the private sector amounted to Rs. 4,136 billion.