Remittance Inflow Increases, Current Account Remains at a Deficit of Rs 247 Billion

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Remittance Inflow Increases, Current Account Remains at a Deficit of Rs 247 Billion

June 15: The country has received Rs 809.89 billion in remittance in the first ten months of fiscal year (FY 2020/21), according to the Nepal Rastra Bank (NRB).    
Releasing the Current Macroeconomic and Financial Situation of the country based on ten month’s data on Monday, the central bank stated that the inflow of remittance increased 19.2 per cent in the review period against a decrease of 6.3 per cent in the same period of the previous year.
According to the NRB, the number of Nepali workers taking approval for foreign employment decreased 60.3 per cent in the review period. It had decreased 2.7 per cent in the corresponding period of the previous year.
The NRB report stated that the current account remained at a deficit of Rs 247.08 billion in the review period compared to a deficit of Rs 96.18 billion in the corresponding period of the previous year.    
In the US Dollar terms, the current account registered a deficit of 2.11 billion in the review period compared to a deficit of 855.9 million in the same period of the previous year.    
Likewise, the Balance of Payments (BOP) registered a surplus of Rs 7.75 billion in the review period as compared to a surplus of Rs 120.90 billion in the same period of the previous year.

During the ten months of 2020/21, merchandise exports increased 32.2 percent to Rs108.48 billion compared to an increase of 4.5 percent in the same period of the previous year. Destination-wise, exports to India and other countries increased 35.8 percent and 25.3 percent respectively whereas exports to China decreased 18.4 percent.

Exports of soybean oil, cardamom, jute goods, polyester yarn and threads, woolen carpet, among others, increased whereas exports of palm oil, pulses, zinc sheet, wire, cattle-feed, among others, decreased in the review period.

During the ten months of 2020/21, merchandise imports increased 22.3 percent to Rs.1254.11 billion against a decrease of 13.0 percent a year ago.

Destination-wise, imports from India, China and other countries increased 29.8 percent, 17.2 percent and 6.2 percent respectively.

Imports of transport equipment and parts, crude soybean oil, MS billet, rice, telecommunication equipment and parts, among others, increased whereas imports of aircraft spareparts, crude palm oil, petroleum products, video television and parts, silver, among others, decreased in the review period.

Total trade deficit increased 21.5 percent to Rs.1145.63 billion during the ten months of 2020/21. Such a deficit had decreased 14.2 percent in the same period of the previous year.

The export-import ratio increased to 8.6 percent in the review period from 8.0 percent in the same period of the previous year.

The year-on-year consumer price inflation stood at 3.65 percent in the tenth month of 2020/21 compared to 5.83 percent a year ago. Food and beverage inflation stood at 4.72 percent whereas non-food and service inflation stood at 2.81 percent in the review month.

The price of ghee and oil; meat and fish; non-alcoholic drinks and tobacco products sub-groups rose 28.20 percent, 17.12 percent, 9.85 percent and 9.84 percent respectively on y-o-y basis.

 

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