Remittance inflow up; BoP in huge deficit: NRB
KATHMANDU: Nepal Rastra Bank (NRB) revealed that remittance inflow has increased by 36.4 per cent in the four months of the current fiscal year while the nation's balance of payment (BoP) remains at a deficit of Rs 57.33 billion.
According to the central bank, the workers' remittances increased 36.4 percent to Rs 312.26 billion in the review period compared to a decrease of 1.4 percent in the same period of the previous year. "In US Dollar terms, workers’ remittances increased 23.1 percent in the review period compared to 2.2 percent in the corresponding period of the previous year," the report states.
Furthermore, the number of Nepali workers migrating for foreign employment decreased by 27.7 percent in the review period against one percent decrease in the same period of the previous year while the number of workers outbound to Malaysia shrank significantly in the review period, according to the Current Macroeconomic and Financial Situation of the country released on Monday.
"Overall BOP remained at a deficit of Rs 57.33 billion in the review period compared to a surplus of Rs 2.40 billion in the same period of the previous year. In the US Dollar terms, the overall BOP recorded a deficit of 503.6 million in the review period compared to a surplus of 22.3 million in the same period of the previous year," the Current Macroeconomic and Financial Situation read.
Likewise, the central bank said that the government spending on cash basis increased 17.5 percent while revenue collection also increased by 30.5 percent. "The year on year consumer price inflation stood at 4.2 percent in mid-November 2018 compared to 3.9 percent a year ago. Increase in the price of transportation, cereal and grains, housing and utilities and clothing, among others, mainly contributed to a rise in overall inflation in the review period," the report reveals.
The NRB states that the total trade deficit has further widened by 37.8 percent to Rs 454.48 billion in four months of 2018/19. The export-import ratio slid down to 6.1 percent in the review period from 7.4 percent in the corresponding period of the previous year.