Nepal’s foreign currency reserves rose 42.2 percent to record Rs 386.96 billion in the first nine months of current fiscal year, spurred by growing remittance inflow and tourism and other service incomes, according to Nepal Rastra Bank (NRB) statistics.
The figure was at Rs 272.15 billion at the beginning of the current fiscal year.
The current forex reserves are sufficient for financing merchandise imports for 10.04 months and merchandise and service imports for 9.3 months, states the NRB’s latest macroeconomic report.
Experts, however, said the continuous devaluation of the Nepali rupee against the US dollar may weaken this advantage as importers will have to pay more to import goods from third countries. “Nevertheless, the figure is satisfactory as foreign exchange reserves which can finance imports for six months are considered healthy,” said NIC Bank CEO Sashin Joshi.
Also, the country’s Balance of Payments (BoP) registered its highest ever surplus of Rs 91.37 billion over the review period. The BoP figure has set one after another record in recent months, although the surplus was estimated to be at Rs 5 billion.
Economists say a BOP surplus increases a country’s credibility by enhancing its debt servicing capacity. They, however, expressed concern about the source of the surplus. “Remittance and tourism played a crucial role in maintaining the massive BoP surplus. And, as both the indicators are highly volatile, it is unwise to formulate a long-term macroeconomic policy considering them,” said economist Bishwamber Pyakurel.
Over the review period, remittance inflow rose 36.5 percent to Rs 248 billion.
As far as inflation is concerned, the figure stood at 7.5 percent—slightly higher than the targeted 7 percent. The government aims to tame inflation to 7 percent this year. In recent months, rise in prices of non-food items pushed the overall inflation figure up. Over the period food inflation was at 4.6 percent, while non-food inflation at 10.1 percent.
Pyakurual said although the overall inflation rate of 7.5 percent is moderate, inflation in daily essential commodities is still higher. Strong dollar may challenge NRB in its fight against inflation.
Deposit mobilisation of the banks and financial institutions (BFIs) increased by 13.5 percent to Rs 110.73 billion over the period. Commercial banks posted a 15.8 percent increase in their deposits, while deposits of development banks and finance companies rose 10.8 percent and 1.6 percent, respectively.
BFIs’ loans and advances increased by 10.1 percent (Rs 86.49 billion) compared to a growth of 11.3 percent (Rs 84.20 billion) last year. Loans and advances of commercial banks, development banks and finance companies rose 12.8 percent, 6.0 percent and 0.3 percent, respectively.
The country witnessed over four times increase in trade deficit in the four months of current fiscal year. From Rs 26.62 billion deficit in the first month, the trade deficit has gone up to Rs 111.80 billion during the four months, according ...
With the swelling foreign exchange reserves, the richer Nepal can afford to buy more merchandise from abroad to feed its growing consumerism. The foreign exchange reserve of the central bank has leapt to Rs 342.74 billion in the first four ...
Nepal’s economy will grow at 5 percent in the current fiscal year, while inflation will remain at 8 percent, according the Nepal Rastra Bank forecast. A meeting of the NRB management committee represented by the governor, two deputy govern ...
The remittances inflow has seen almost eight times increase in five months to Rs 133.19 billion from Rs 17.7 billion in the current fiscal year. “Workers’ remittance increased by 37.9 per cent to Rs 133.19 billion in the fifth month of the ...
The gross foreign exchange reserves surged by 32.3 per cent to Rs 360.14 billion in mid-February from a level of Rs 272.15 billion as at mid-July 2011, according to Nepal Rastra Bank (NRB). Such reserves had declined by four per cent to Rs 25 ...
The country witnessed a total trade deficit of Rs 330.34 billion in the fiscal year 2010-11 — up by 5.4 per cent compared to a fiscal year ago, according to annual macro-economic report of 2010-11 published by the central bank here today. ...
The inflow of remittance witnessed a slight growth during the nine months of the current fiscal year. According to Nepal Rastra Bank sources, the remittance saw an increase of only by 9.6 per cent to Rs. 164.93 billion compared to 60.3 per ...
The ongoing liquidity crisis has not affected the profits of commercial banks as expected with their interest income going up by Rs. 14.3 billion in three months from the second quarter to the third quarter of this fiscal year. Their third ...
The freefall of Nepali rupee does not seem to stop, with the exchange rate for the domestic currency against the US dollar touching new lows almost every day. First, the rupee plunged to an all time low of Rs 84.20 per dollar on November 2 ...
A total of 38 percent of the country’s population now has bank accounts, up from 26 percent in 2006, the latest Nepal Rastra Bank (NRB) statistics have shown. The figure, however, does not represent the exact number of people having bank a ...
Nepalis may have to face price rise in goods imported by paying US dollars before the Dashain festival due to the currency’s significant rise against Nepali rupee. Over the last one month, Nepali rupee has become weaker by Rs 6 per dollar. ...
Petroleum products accounted for 20 percent of the country’s total import bill in fiscal 2010-11. The value of oil imports jumped 43.92 percent in the last fiscal year on rising prices in the international market and swelling consumption at h ...
Political instability and lack of job opportunities are prompting more Nepali youths to opt for foreign employment. In the first 11 months of the current fiscal year, about half-a-million Nepali youths left the country for overseas jobs. A ...
Nepal Rastra Bank (NRB) has fixed the exchange rate for the US dollar at Rs 78.76 for Friday marking a three-month high for the Nepali rupee. The rupee had dropped to a historic low of Rs 86.37 on Dec 16. Nepali currency is pegged with Ind ...
Real estate transactions have picked up, albeit in slow pace, in the recent months, leading to increase in land registration fee collection. According to the Finance Ministry, the land registration fee collection has increased by 16.16 per ...
Tablet PC Prices in Nepal
Mobile Phone Prices in Nepal
LCD LED TV Prices in Nepal
Laptops Prices in Nepal
Bikes Prices in Nepal
New Loadshedding Timetable
List of Commercial Banks in Nepal