Kathmandu. The country’s current economic and financial situation appears to be improving. This is shown by the data released by Nepal Rastra Bank today for the first 7 months of the current fiscal year up to Magh.
Based on the imports for the first 7 months of the current fiscal year, the foreign exchange reserves held by the banking sector appear to be sufficient to cover 17.2 months of goods imports and 14.4 months of goods and services imports. As of mid-Magh 2081, the ratios of foreign exchange reserves to gross domestic product, total imports and broad money supply were 41.5 percent, 120.3 percent and 32.5 percent respectively. As of mid-Ashar 2081, these ratios were 35.8 percent, 108.6 percent and 29.3 percent respectively.
Similarly, as of mid-Ashar 2081, Rs. Total foreign exchange reserves, which were worth Rs. 2041.1 billion, increased by 16.1 percent to Rs. 2369.08 billion as of mid-January 2081. Such reserves in US dollars increased by 11.7 percent to Rs. 17.05 billion as of mid-January 2081, from Rs. 15.27 billion as of mid-January 2081.
Out of the total foreign exchange reserves, the reserves held by Nepal Rastra Bank increased by 13.9 percent to Rs. 2105.14 billion as of mid-January 2081, from Rs. 1848.55 billion as of mid-January 2081. The foreign exchange reserves held by banks and financial institutions (excluding Nepal Rastra Bank) stood at Rs. 192.55 billion in mid-Ashar 2081, increasing by 37.1 percent to Rs. 263.93 billion in mid-Magh 2081. The share of Indian currency in the total foreign exchange reserves as of mid-Magh 2081 is 22.0 percent.
During the review period, the current account was in surplus by Rs. 166.80 billion. In the same period of the previous year, the current account was in surplus by Rs. 162.52 billion. The current account, which was in surplus by Rs. 1.22 billion in the same period of the previous year in US dollars, has been in surplus by Rs. 1.24 billion in the review period.
The balance of payments position as of Magh is in surplus by Rs. 284.41 billion. In the same period of the previous year, the balance of payments position was in surplus by Rs. 297.72 billion. In US dollars, the balance of payments position, which was in surplus by Rs. 224 billion in the same period of the previous year, has been in surplus by Rs. 211 billion in the review period.
Total merchandise exports increased by 46.5 percent to Rs. 127.2 billion in the 7 months of the current fiscal year. Such exports had decreased by 7.1 percent in the same period of the previous year.
Up to Magh, remittances have increased by 7.3 percent to Rs. 958 billion. In the same period of the previous year, remittances had increased by 18.8 percent. Remittances in US dollars have increased by 5.3 percent to Rs. 665 billion. In the previous year, such inflows had increased by 16.4 percent.
Up to Magh, total merchandise imports have increased by 10.1 percent to Rs. 988 billion 590 million. In the same period of the previous year, such imports had decreased by 2.3 percent. In these 7 months, the total merchandise trade deficit has increased by 6.2 percent to Rs. 861 billion 380 million. This deficit had decreased by 1.8 percent in the same period of the previous year. The export-import ratio reached 12.9 percent during the review period. This ratio was 9.7 percent in the same period of the previous year.
The annual point consumer inflation in the month of Magh 2081 was 4.16 percent. In the same month of the previous year, such inflation was 5.01 percent. In the review month, the inflation of the food and beverage group was 4.95 percent and the inflation of the non-food and services group was 3.74 percent. In the same period of the previous year, the inflation of these groups was 6.59 percent and 3.98 percent, respectively.
