Remittance surges 25.3% to Rs 733.22 billion in six months

Himal Press 06 Feb 2024
Remittance surges 25.3% to Rs 733.22 billion in six months

KATHMANDU: Remittance inflows surged by 25.3% to reach Rs. 733.22 billion over the first six months of fiscal year 2023/24.

According to macroeconomic data for the first six months of the current fiscal year released by the Nepal Rastra Bank (NRB) on Tuesday, remittance inflows in US dollar terms increased by 22.6% to $5.52 billion.

The number of Nepali workers obtaining labor approval for foreign employment stood at 207,970 in the six months, while those renewing entry approval numbered 135,435, down from 275,643 and 142,548, respectively, over the first six months of 2022/23.

Current account, BoP in surplus

The current account and balance of payments (BoP recorded a surplus of Rs 161.62 billion and Rs. 273.52 billion, respectively, during the review period. This marks a significant improvement compared to the deficits recorded in the same period of the previous year.

Net transfers also increased by 24% to Rs 799.51 billion during the review period, compared to a growth of 22.7% in the corresponding period of the previous fiscal year.

Forex reserves rise 18%

The foreign exchange reserves saw a notable increase of 18% to reach Rs 1,816.57 billion in mid-January 2024, compared to Rs 1,539.36 billion in mid-July 2023. In US Dollar terms, gross foreign exchange reserves increased by 16.9% to $13.69 billion during the same period.

Reserves held by the NRB increased by 18.9% to Rs 1,600.23 billion, while those held by banks and financial institutions (except NRB) increased by 11.8% to Rs 216.35 billion in mid-January 2024.

Based on the imports for the first six months of 2023/24, the foreign exchange reserves of the banking sector are sufficient to cover prospective merchandise imports for 14.5 months, and merchandise and services imports for 12.1 months.


Published On: 06 Feb 2024


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