Nepal's Balance of Payments (BOP) situation at an impressive Rs 179.37 billion
KATHMANDU, JULY 16
The country’s balance of payments (BOP) situation stands at an impressive position despite the economic downfall that countries across the world, including Nepal, are facing today due to the COVID-19 pandemic, thanks to narrowed down trade deficit due to limited import in the last few months.
As per the Macroeconomic and Financial Situation Report of the first 11 months of fiscal year 2019-20 released by Nepal Rastra Bank (NRB) today, the country’s BoP remained at a surplus of Rs 179.37 billion in the review period against a deficit of Rs 90.83 billion in the same period of the previous year.
The balance of payments is a statement of all transactions made between entities in one country and the rest of the world over a defined period of time. The surplus BoP also resulted in a boost in the country’s foreign exchange reserve by 25.8 per cent to Rs 1,306.46 billion in mid-June 2020 from Rs 1,038.92 billion in mid-July 2019 — the start of the current fiscal.
As per the NRB report, the total trade deficit narrowed down by 16.4 per cent to Rs 1,012.81 billion in the 11 months of 2019- 20. Such deficit had expanded by 17.2 per cent in corresponding period of previous year.
The current account, however, recorded a deficit of Rs 71.64 billion in the review period.
Such deficit was Rs 249.08 billion in the same period of the previous year.
Meanwhile, remittance inflow decreased by three per cent to Rs 774.87 billion in the review period against an increase of 17.5 per cent in the same period of the previous year, as per the central bank. The number of Nepali workers (institutional and individual — new and legalised) taking approval for foreign employment decreased by 12.4 per cent in the review period.
It had decreased by 35.7 per cent in the same period of the previous year.
A version of this article appears in e-paper on July 17, 2020, of The Himalayan Times.