Trade deficit increases 24.9% to Rs 1,431.3bn in 10 months: NRB data

KATHMANDU: Nepal's trade deficit increased 24.9% to Rs 1,431.30 billion during the 10 months of current fiscal year 2021/22, according to data released by Nepal Rastra Bank (NRB) today. The trade deficit had increased 21.5% in the corresponding period of the previous year. The export-import ratio increased to 10.8% in the review period from 8.6% in the corresponding period of the previous year. The y-o-y consumer price inflation stood at 7.87% in the tenth month of current fiscal year compared to 3.65% a year ago. Food and beverage inflation stood at 7.13% whereas non-food and service inflation stood at 8.45% in the review month. The average monthly y-o-y inflation for 10 months recorded 5.84%. Likewise, remittance inflows increased 0.2% to Rs.811.79 billion in the review period compared to 19.2% in the same period of the previous year. In the US Dollar terms, remittance inflows decreased 1.6% to 6.76 billion in the review period against an increase of 16.1% in the same period of the previous year. Balance of Payments (BOP) remained at a deficit of Rs 288.50 billion in the review period against a surplus of Rs 7.75 billion in the same period of the previous year. In the US Dollar terms, the BOP remained at a deficit of 2.41 billion in the review period against a surplus of 55.4 million in the same period of the previous year. Similarly, Gross foreign exchange reserves decreased 18.0% to Rs.1146.88 billion in mid-May 2022 from Rs1399.03 billion in mid-July 2021. In the US dollar terms, the gross foreign exchange reserves decreased 21.1% to 9.28 billion in mid-May 2022 from 11.75 billion in mid-July 2021. According to the central bank's 10-month data, the Federal Government spending amounted to Rs.908.86 billion and revenue collection Rs 865.70 billion. Broad money (M2) increased 3.8% in the review period compared to a growth of 15.4% in the corresponding period of the previous year. On y-o-y basis, M2 expanded 9.6% in mid-May 2022. Likewise, deposits at banks and financial institutions (BFIs) increased 5.0% and private sector credit increased 13.4%. On y-o-y basis, deposits increased 11.5% and private sector credit 16.6%. READ ALSO:

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