July 12: The country’s Balance of Payments (BOP) remained at a deficit of Rs 269.81 billion in the first 11 months of the current fiscal year (FY 2021/22), according to the latest report of Nepal Rastra Bank (NRB).

Such a deficit was Rs 15.15 billion in the corresponding period of the previous year, states the Current Macroeconomic and Financial Situation Report unveiled by the central bank on Monday.

In the US dollar terms, the BOP remained at a deficit of 2.26 billion in the review period against a deficit of 140.8 million in the same period of the previous year.

Similarly, the current account remained at a deficit of Rs 595.73 billion in the review period compared to a deficit of Rs 298.11 billion in the same period of the previous year.

In the review period, capital transfer decreased 32.9 percent to Rs 9.49 billion and net foreign direct investment (FDI) increased 7.1 percent to Rs 17.35 billion, the report further stated. In the same period of the previous year, capital transfer and net FDI amounted to Rs 14.15 billion and Rs 16.20 billion respectively.

According to the report, the country’s gross foreign exchange reserves decreased 15.9 percent to Rs 1176.84 billion in mid-June 2022 from Rs 1399.03 billion in mid-July 2021. In the US dollar terms, the gross foreign exchange reserves decreased 19.6 percent to 9.45 billion in mid-June 2022 from 11.75 billion in mid-July 2021.

Of the total foreign exchange reserves, reserves held by NRB decreased 17.1 percent to Rs 1031.89 billion in mid-June 2022 from Rs 1244.63 billion in mid-July 2021. Reserves held by banks and financial institutions (except NRB) decreased 6.1 percent to Rs 144.95 billion in mid-June 2022 from Rs 154.39 billion in mid-July 2021, the report stated. The share of Indian currency in total reserves stood at 25 percent in mid-June 2022.