Himal Press 
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KATHMANDU: Remittances inflow increased by 16.8% to Rs 281.05 billion over the first three months of the Fiscal Year 2022/23 compared to a decline of 7.1% in the same period of the previous fiscal year.
According to the Current Macroeconomic and Financial Situation (for the first three months of FY 2022/23) published by Nepal Rastra Bank (NRB) on Wednesday, remittances in US dollar terms increased by 7.9% to 2.19 billion against a drop of 7.1% in the first three months of the previous fiscal year.
The number of Nepali workers taking new approvals (institutional and individual) for foreign employment increased by a whopping 123.1% to 147,932 in the review period. Likewise, the number of workers renewing entry approval for foreign employment increased by 66.2% to 57,861 in the review period. It had increased 219.7% percent in the same period of the previous fiscal year, according to the report.
BoP in surplus after 14 months
The improvement in remittances flow and drop in imports has helped the country report a balance of payment (BoP) surplus for the first time in 14 months.
According to the report, the BoP was in a surplus of Rs 12.43 billion in the review period, compared to a deficit of Rs 87.71 billion in the first three months of the previous fiscal year.
In US dollar terms, the BoP is in a surplus of 91.8 million compared to a deficit of 741.2 million.
The depreciation of Nepali currency vis-a-vis the US dollar has boosted the country’s foreign exchange reserve. According to the report, gross foreign exchange reserves increased by 2.5% to Rs 1,246.22 billion in mid-October, up from Rs 1,215.80 in mid-July, 2022. In the US dollar terms, however, the gross foreign exchange reserves fell by 0.6% to 9.48 billion in mid-October down from 9.54 billion in mid-July, 2022.
Based on the imports over the first three months of 2022/23, the foreign exchange reserves of the banking sector are sufficient to cover the prospective merchandise imports of 9.6 months, and merchandise and services imports of 8.3 months, the central bank said in its report.
