KATHMANDU: Nepal’s remittance inflow increased by 39.1 percent to Rs 1.659 trillion during the first nine months of the current fiscal year, according to data released by the Nepal Rastra Bank on Monday.
During the same period last fiscal year, remittance inflow had increased by 10.2 percent.
In the month of Chaitra alone, Nepal received Rs 209.75 billion in remittance, compared to Rs 139.54 billion during the same month a year ago.
In US dollar terms, remittance inflow rose by 31.9 percent to USD 11.55 billion during the review period, whereas it had grown by 7.5 percent in the corresponding period last year.
According to the central bank, net secondary income (net transfer) reached Rs 1.820 trillion during the review period, up from Rs 1.303 trillion in the same period last fiscal year.
Fewer workers leaving for foreign employment
The number of Nepalis obtaining final labour approval for foreign employment under both institutional and individual categories stood at 294,186 during the review period. Likewise, 293,259 workers received renewed labour permits.
In the same period last year, those figures stood at 358,222 and 249,652 respectively.
Current account and balance of payments improve
The current account remained in surplus by Rs 618.68 billion during the review period, compared to a surplus of Rs 222.67 billion in the same period last year.
In US dollar terms, the current account surplus increased from USD 1.64 billion to USD 4.32 billion.
Similarly, net capital transfer reached Rs 14.50 billion, up from Rs 7.71 billion in the corresponding period last year.
Foreign direct investment (equity only) also increased to Rs 14.55 billion, compared to Rs 8.94 billion in the same period of the previous fiscal year.
According to Nepal Rastra Bank, the balance of payments (BoP) remained at a surplus of Rs 731.16 billion, significantly higher than the Rs 346.23 billion surplus recorded during the same period last year.
In US dollar terms, the BoP surplus increased from USD 2.55 billion to USD 5.10 billion.
Foreign exchange reserves near Rs 3.5 trillion
Nepal’s total foreign exchange reserves increased by 30.5 percent to Rs 3.494 trillion by the end of Chaitra, up from Rs 2.677 trillion at the end of Asar last year.
In US dollar terms, reserves increased by 20.8 percent from USD 19.50 billion to USD 23.55 billion.
Of the total reserves, those held by Nepal Rastra Bank increased by 27.7 percent to Rs 3.082 trillion, while reserves held by banks and financial institutions other than the central bank rose by 56.8 percent to Rs 412.32 billion.
Indian currency accounted for 20.4 percent of total foreign exchange reserves as of the end of Chaitra.
Reserve position remains strong
Based on imports during the first nine months of the fiscal year, the existing foreign exchange reserves are sufficient to cover 21.8 months of merchandise imports and 18.4 months of goods and services imports.
As of the end of Chaitra, the ratios of foreign exchange reserves to GDP, total imports, and broad money supply stood at 57.2 percent, 153.1 percent, and 41.2 percent respectively.
At the end of Asar last year, those ratios were 43.8 percent, 128.1 percent, and 34.1 percent respectively.
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