Himal Press 
KATHMANDU: Remittance inflows increased by 19.3% percent to Rs 1,327.51 billion in the first 11 months of 2023/24 compared to the same period of the previous fiscal year.
According to the Current Macroeconomic Situation Report published by the Nepal Rastra Bank (NRB) on Wednesday, remittance inflows in the US Dollar terms increased by 17.3% to 9.98 billion.
The number of Nepali workers receiving first-time approval for foreign employment was recorded at 422,936, while those receiving approval for re-entry totaled 262,705 during the 11-month period. These numbers were 459,415 and 260,262, respectively, in the same period of the previous fiscal year.
Both current account, BoP in surplus
The current account recorded a surplus of Rs 200.39 billion in the review period, in contrast to a deficit of Rs 79.53 billion in the same period of the previous year.
In US Dollar terms, the current account registered a surplus of $1.51 billion, compared to a deficit of $613.2 million last year, the NRB said in its monthly report.
Capital transfer decreased by 25.7% to Rs. 5.46 billion, while net foreign direct investment (FDI) remained at Rs 8.16 billion. In the same period last year, capital transfer amounted to Rs. 7.35 billion and net FDI was Rs 4.65 billion.
The Balance of Payments (BOP), too, recorded a surplus of Rs 425.67 billion in the period, compared to a surplus of Rs 224.9 billion in the same period of the previous year. In US Dollar terms, the BOP registered a surplus of $3.2 billion.
Foreign exchange reserves
Gross foreign exchange reserves increased by 27.8% to Rs 1,967.19 billion in mid-June 2024, up from Rs 1,539.36 billion in mid-July 2023.
In US Dollar terms, the gross foreign exchange reserves increased by 25.7% to $14.72 billion, from $11.71 billion in mid-July 2023.
According to the report, reserves held by the NRB increased by 30.2% to Rs 1,752.77 billion, while reserves held by banks and financial institutions (excluding NRB) increased by 10.8% to Rs 214.42 billion.
The share of Indian currency in total reserves stood at 22.3% in mid-June 2024.
Based on imports for the eleven months of 2023/24, the foreign exchange reserves of the banking sector are sufficient to cover prospective merchandise imports for 15.1 months and merchandise and services imports for 12.6 months, according to the report.
