Nepal’s current account at surplus of Rs 166.87bn, BOP at surplus of Rs 327.55bn

KATHMANDU: Nepal's current account has shown a positive turnaround, boasting a surplus of Rs 166.87 billion in the first eight months of the current fiscal year 2023/24, up until mid-March, according to the macroeconomic and financial situation report released by the Nepal Rastra Bank (NRB). This is a significant improvement from the deficit of Rs 55.28 billion recorded in the same period of the previous fiscal year.

In US Dollar terms, the current account registered a surplus of 1.25 billion in the review period, a stark contrast to the deficit of 429.3 million seen in the same period of previous fiscal year, according to Nepal Rastra Bank (NRB).

However, capital transfer witnessed a decrease of 30.2% to Rs 3.89 billion, while net foreign direct investment (FDI) remained positive at Rs 5.63 billion. In the same period of the previous fiscal year, capital transfer amounted to Rs 5.58 billion and net FDI was at Rs 1.17 billion.

The Balance of Payments (BOP) also remained in surplus, standing at Rs 327.55 billion in the first seven months, a significant increase from the surplus of Rs 142 billion in the same period of the previous fiscal year.

In US Dollar terms, the BOP remained at a surplus of 2.46 billion in the review period, an improvement from the surplus of 1.08 million in the same period of the previous year.