Nepal receives Rs 640.43 billion in remittances in five months

KATHMANDU: Consumer price inflation stood at 6.05 percent in mid-December 2024, compared to 4.95 percent a year earlier, according to Nepal Rastra Bank (NRB).

In its report on the Current Macroeconomic and Financial Situation of Nepal (based on data for the five months ending mid-December 2024/25), the NRB stated that food and beverage inflation reached 9.99 percent, while non-food and service inflation stood at 3.92 percent during the review period.

In the same period the previous year, these indices had increased by 5.00 percent and 4.92 percent, respectively.

The NRB also reported a 16.5 percent increase in merchandise exports, which totaled Rs 73.66 billion, compared to a 6.1 percent decline in the same period last year.

Exports to India and China increased by 23.7 percent and 68.9 percent, respectively, while exports to other countries decreased by 1.2 percent.

Exports of items like soybean oil, tea, polyester yarn and thread, particle board, and woolen carpets rose, while exports of palm oil, zinc sheets, ginger, ready-made garments, and herbs saw a decline.

Regarding remittance inflows, these increased by 4.4 percent to Rs 640.43 billion in the review period, compared to a 24.2 percent increase in the same period of the previous year.

In US dollar terms, remittances rose by 2.5 percent to USD 4.73 billion, compared to a 21.1 percent increase the previous year.

The current account recorded a surplus of Rs 140.71 billion in the review period, slightly down from Rs 141.03 billion in the same period last year.

In US dollar terms, the surplus was USD 1.04 billion, compared to USD 1.06 billion in the previous year.

The Balance of Payments (BOP) posted a surplus of Rs 225.34 billion in the review period, up from Rs 216.05 billion in the same period last year.

In US dollar terms, the BOP surplus was USD 1.67 billion, compared to USD 1.63 billion the previous year.

The NRB also noted that gross foreign exchange reserves increased by 11.4 percent, reaching Rs 2,273.26 billion by mid-December 2024, up from Rs 2,041.10 billion in mid-July 2024. In US dollar terms, reserves increased by 9.7 percent to USD 16.76 billion from USD 15.27 billion over the same period.