Home
B360 National

Nepal records Rs 92.21bn remittance inflows in first month of FY 2022/23

A A- A+

KATHMANDU: Nepal's remittance inflows increased 20.3% to Rs 92.21 billion in the first month of fiscal year 2022/23 ending mid-August, according to macroeconomic data released by Nepal Rastra Bank (NRB). The remittance had witnessed a decrease of 17.4% in the same period of the previous year. In the US Dollar terms, remittance inflows increased 12.5% to 724.05 million in the review period against decrease of 16.8% in the same period of the previous year. The y-o-y consumer price inflation stood at 8.26% in the first month of fiscal year 2022/23 compared to 4.35% a year ago. Food and beverage inflation stood at 7.11% while non-food and service inflation stood at 9.18% in the review month. During the first month of FY 2022/23, merchandise imports decreased 12.9% to Rs131.29 billion against an increase of 75.7% a year ago. Destination-wise, imports from India, China and other countries decreased 12.1%, 10.5%, and 15.9% respectively. Imports of petroleum products, sponge iron, medicine, chemical fertiliser, crude palm oil, among others, increased while imports of transport equipment and parts, MS billet, telecommunication equipment and parts, crude soyabean oil, hot rolled sheet in coil, among others, decreased in the review period. Likewise, merchandise exports decreased 28.7% to Rs.14.81billion against an increase of 115.9% in the same period of the previous year. Destination-wise, exports to India and China decreased 36.5% and 24.4% respectively whereas exports to other countries increased 5.7%. Exports of palm oil, zinc sheet, readymade garments, medicine (ayurvedic), particle board, among others, increased whereas exports of soyabean oil, oil cakes, jute goods, juice, cardamom, among others, decreased in the review period. The total trade deficit decreased 10.4% to Rs116.48 billion in the first month of 2022/23. Such a deficit had increased 70.6% in the corresponding period of the previous year. The export-import ratio decreased to 11.3% in the review period from 13.8% in the corresponding period of the previous year. Balance of Payments (BOP) remained at a deficit of Rs 22.63 billion in the review period compared to a deficit of Rs 38.75 billion in the same period of the previous year. In US Dollar terms, the BOP remained at a deficit of 177.68 million in the review period compared to a deficit of 325.53 million in the same period of the previous year. Gross foreign exchange reserves decreased 1.5% to Rs1197.85 billion in mid-August 2022 from Rs 1215.80 billion in mid-July 2022. In US dollar terms, the gross foreign exchange reserves decreased 1.2% to 9.42 billion in mid-August 2022 from 9.54 billion in mid-July 2022. During the first month of 2022/23, total expenditure of the federal government according to data of Financial Comptroller General Office (FCGO), Ministry of Finance, stood at Rs 22.26 billion. The recurrent expenditure, capital expenditure and financial expenditure amounted to Rs 5.66 billion, Rs 1.48 billion and Rs 15.12 billion respectively in the review period. In the review period, revenue mobilisation (including the amount to be transferred to provincial and local governments) stood at Rs.79.72 billion. The tax revenue and non-tax revenue amounted to Rs 70.64 billion and Rs.9.08 billion respectively in the review period. Broad money (M2) decreased 1.9% in the review period compared to a decline of 1.6% in the corresponding period of the previous year. On y-o-y basis, M2 expanded 6.4% in mid-August 2022. Deposits at Banks and Financial Institutions (BFIs) decreased 2.0% in the review period compared to a decrease of 1.6% in the corresponding period of the previous year. On y-o-y basis, deposits at BFIs expanded 8.6% in mid-August 2022. Private sector credit from BFIs decreased 0.05% in the review period compared to an increase of 1.2% in the corresponding period of the previous year. On y-o-y basis, credit to the private sector from BFIs increased 11.8% in mid-August 2022. READ ALSO: