Himal Press 
KATHMANDU: Remittance inflows increased by 27.6% reaching Rs 613.25 billion in the first five months of the fiscal year 2023/24.
According to the Current Macroeconomic and Financial Situation Report released by the Nepal Rastra Bank (NRB) on Thursday, remittance flows had surged by 23% in the same period of the previous fiscal year. In US dollar terms, remittances increased by 24.5% to 4.62 billion in the review period.
A total of 173,555 youths sought new approvals for foreign employment in the review period, while those renewing their entry approvals stood at 104,037. In the same period of the previous fiscal year, 236,779 workers had sought new approvals, while 115,948 had renewed their entry approvals.
Meanwhile, the net transfer increased by 26.3% to Rs. 669.74 billion over the first five months of 2023/24 that ended in mid-December, compared to a 21.6% increase in the same period of the previous fiscal year.
According to the report, the current account remained at a surplus of Rs 140.23 billion in the review period compared to a deficit of Rs. 41.21 billion in the same period of the previous fiscal year. In US dollar terms, the current account was at a surplus of 1.05 billion compared to a deficit of 322.2 million in the same period of the previous year.
The Balance of Payments (BOP) also remained in surplus at Rs 210.59 billion, up from Rs 45.87 billion in the same period of the previous year.
Likewise, gross foreign exchange reserves increased by 14.8% to reach Rs 1,767.04 billion in mid-December 2023. In US dollar terms, the reserves saw a 13.6% increase to 13.31 billion. While reserves maintained in the central bank grew by 15.6% to Rs 1,556.25 billion, while those held at banks and financial institutions increased by 8.9% to Rs 210.79 billion.
The foreign exchange reserves can cover prospective merchandise imports for 14.1 months and merchandise and services imports for 11.8 months, according to the report.
