Kathmandu / The current account remained at a deficit of Rs.462.93 billion in the review period compared to a deficit of Rs.151.42 billion in the same period of the previous year. In the US Dollar terms, the current account registered a deficit of 3.88 billion in the review period compared to deficit of 1.29 billion in the same period last year.
In the review period, capital transfer decreased 41.2
percent to Rs.7 billion and net foreign direct investment (FDI) increased 60.0
percent to Rs.16.30 billion. In the same period of the previous year, capital
transfer and net FDI amounted to Rs.11.91 billion and Rs.10.18 billion
respectively.
Balance of Payments (BOP) remained at a deficit of Rs.258.64
billion in the review period against a surplus of Rs.68.01 billion in the same
period of the previous year. In the US Dollar terms, the BOP remained at a
deficit of 2.17 billion in the review period against a surplus of 565.8 million
in the same period of the previous year.
Gross foreign exchange reserves decreased 16.3
percent to Rs.1171 billion in mid-March 2022 from Rs.1399.03 billion in
mid-July 2021. In the US dollar terms, the gross foreign exchange reserves decreased
18.5 percent to 9.58 billion in mid-March 2022 from 11.75 billion in mid-July
2021. 25. Of the total foreign exchange reserves, reserves held by NRB
decreased 18.2 percent to Rs.1018.05 billion in mid-March 2022 from Rs.1244.63
billion in mid-July 2021.
Reserves held by banks and financial institutions
(except NRB) decreased 0.9 percent to Rs.152.95 billion in mid-March 2022 from
Rs.154.39 billion in mid-July 2021. The share of Indian currency in total
reserves stood at 24.2 percent in mid-March 2022.
Based on the imports of eight months of 2021/22, the
foreign exchange reserves of the banking sector is sufficient to cover the
prospective merchandise imports of 7.4 months, and merchandise and services
imports of 6.7 months. The ratio of reserves-to-GDP (previous fiscal year),
reserves-to-imports and reserves-to-M2 stood at 27.4 percent, 55.6 percent and
22.0 percent respectively in mid-March 2022. Such ratios were 32.8 percent,
84.7 percent and 27.1 percent respectively in mid-July 2021.
The price of oil (Crude Oil Brent) in the
international market increased 60.3 percent to US dollar 110.39 per barrel in
mid-March 2022 from US dollar 68.87 per barrel a year ago. The price of gold
increased 14.6 percent to US dollar 1954.05 per ounce in mid-March 2022 from US
dollar 1704.80 per ounce a year ago.
Nepalese currency vis-à-vis the US dollar depreciated
2.63 percent in mid-March 2022 from mid-July 2021. It had appreciated 3.62
percent in the same period of the previous year. The buying exchange rate per
US dollar stood at Rs.122.25 in mid-March 2022 compared to Rs.119.04 in
mid-July 2021.
