Nepal’s current account at surplus of Rs 161.69bn, BOP at surplus of Rs 297.72bn

KATHMANDU: Nepal's current account has shown a positive turnaround, boasting a surplus of Rs 161.69 billion in the first seven months of the current fiscal year 2023/24, up until mid-February, according to recent financial data released by the central bank. This is a significant improvement from the deficit of Rs 40.16 billion recorded in the same period of the previous fiscal year.

In US Dollar terms, the current account registered a surplus of 1.22 billion in the review period, a stark contrast to the deficit of 314.6 million seen in the same period of previous fiscal year, according to Nepal Rastra Bank (NRB).

However, capital transfer witnessed a decrease of 29.0% to Rs 3.80 billion, while net foreign direct investment (FDI) remained positive at Rs 5.18 billion. In the same period of the previous fiscal year, capital transfer amounted to Rs 5.35 billion and net FDI was at Rs 1.04 billion.

The Balance of Payments (BOP) also remained in surplus, standing at Rs 297.72 billion in the first seven months, a significant increase from the surplus of Rs 128.55 billion in the same period of the previous fiscal year.

In US Dollar terms, the BOP remained at a surplus of 2.24 billion in the review period, an improvement from the surplus of 975.7 million in the same period of the previous year.