BoP at surplus of over Rs 228 billion

KATHMANDU, JULY 11: The Balance of Payment (BoP)  has remained at a surplus of Rs.228.98 billion in the first eleven months of the current fiscal year 2022-23. This was revealed by the Current Macroeconomic and Financial Situation report released by the Nepal Rastra Bank yesterday.

It is a significant improvement compared to the deficit of Rs. 269.81 billion recorded in the same period last year. In terms of US Dollars, the BoP surplus for the review period amounted to 1.74 billion, contrasting with a deficit of 2.26 billion reported in the same period last year.

Similarly, the gross foreign exchange reserves witnessed a significant increase of 21.8 percent, thus reaching Rs. 1480.87 billion from July 17, 2022 - June 16, 2023, compared to Rs. 1215.80 billion in the corresponding period last year. In terms of US dollars, the gross foreign exchange reserves experienced an 18.5 percent surge, amounting to 11.30 billion in this year's review period as it was calculated at 9.54 billion in the corresponding period last year.

In the first 11 months this year, the foreign exchange reserves held by the Nepal Rastra Bank (NRB) increased by 25.1 percent, reaching Rs. 1321.25 billion compared to Rs. 1056.39 billion in the review period last year.

Simultaneously, the reserves held by banks and financial institutions, excluding the NRB, experienced a slight increase of 0.1 percent, totaling Rs. 159.63 billion in the review period this year compared to Rs. 159.41 billion in the same period last year.

 Additionally, from July 17 2022 to June 16, 2023, the year-over-year consumer price inflation remained steady at 6.83 percent against 8.56 percent in the same period last year.

 In the first 11 months of this year period, there was a 16 percent fall in imports while exports went by 22.7 percent, resulting in a 15.2 percent decrease in trade deficit compared to the corresponding period last year.