Remittance inflow continue to surge, increases by 11.2% in four months

KATHMANDU: The inflow of remittance has continued to increase despite COVID-19, as per Nepal Rastra Bank (NRB).

The ‘Current Macroeconomic and Financial Situation of Nepal’ report of the first four months of 2020-21 fiscal year released by the central bank today shows that remittance inflow increased 11.2 percent to Rs 337.72 billion in the review period against a decrease of 2.8 percent in the same period of the previous year.

In the US Dollar terms, remittance inflow increased 6.4 percent to 2.85 billion in the review period against a decrease of 1.9 percent in the same period of the previous year.

The report shows that number of Nepali workers (institutional and individual-new and legalized) taking approval for foreign employment decreased 75.8 percent to 19,251 in the review period. It had increased 5.6 percent in the
same period of the previous year.

The number of Nepali workers (renew entry) taking approval for foreign employment decreased 67.9 percent to 25931 in the review period. It had increased 9.1 percent in the same period of the previous year.

Major Macroeconomic Indicators:

Inflation remained 4.05 percent on y-o-y basis.
 Imports decreased 10.6 percent and exports increased 10.8 percent.
 Remittances increased 11.2 percent in NPR terms and 6.4 percent in USD terms.
 Balance of Payments remained at a surplus of Rs.110.65 billion.
 Gross foreign exchange reserves stood at USD 12.65 billion.
 Federal Government spending amounted to Rs.250.41 billion and revenue collection Rs.240.15
billion.
 Broad money (M2) expanded 6.4 percent. On y-o-y basis, M2 expanded 21.9 percent.
 Deposits at BFIs increased 5 percent and claims on private sector increased 5.4 percent.