Remittances and total foreign exchange (currency) reserves entering the country have increased significantly. Remittance inflows have increased by 35.6 percent in the first five months of the current fiscal year. Similarly, total foreign exchange (currency) reserves have also increased by 19.6 percent.

– Current account balance at Rs 358.83 billion and balance of payments at Rs 421.89 billion
– Remittance inflow increased by 35.6 percent, Rs 183.18 billion was received in Mangsir alone – Deposit mobilization of banks and financial institutions increased by 3.9 percent, credit flow to the private sector increased by 1.9 percent
– Weighted average interest rate on deposits of commercial banks increased by 3.66 percent and weighted average interest rate on loans increased by 7.26 percent According to the monthly report released by Nepal Rastra Bank on Friday, remittances of Rs 870 billion have been received in the five months of the current fiscal year. Which is Rs 230 billion more than in the same period of the last fiscal year. Remittances of Rs 640.43 billion were received in the five months of the last fiscal year. Remittances increased by 4.7 percent in the same period of the last fiscal year. In US dollars, remittances have increased by 29 percent in five months.

In Mangesh of the current fiscal year alone, remittances of Rs 183.18 billion were received. In Mangesh of the last fiscal year, remittances of Rs 18.79 billion were received. In Kartik, remittances of Rs 133.82 billion were received. If we compare the monthly remittance inflow, remittances of Rs 201 billion were received in Asoj last year. Which is the highest ever.

In the five months of the current fiscal year, the number of Nepalis who received final labor permits (institutional and individual) for foreign employment is 175,591 and the number of those who received re-labor permits is 163,924. In the same period of the previous year, such numbers were 190,384 and 135,425, respectively.

As the external sector of the economy continues to strengthen, the government has a good opportunity to build infrastructure, rebuild and develop development spending. Experts say that as the government increases spending, imports will increase and the country has sufficient foreign exchange reserves for imports, so it should spend more.

The total foreign exchange reserves have reached 321.47 billion rupees by mid-Shrawan-Mansir. According to the National Bank, it was 2677.68 billion rupees in mid-Ashar 2082.

The country's foreign exchange reserves have been setting records for the past 39 months. Remittances are increasing, exports are increasing at a high rate despite increasing imports, and sectors including tourism are improving, so foreign exchange reserves have been setting records every month for the past three years. This is enough to cover 21.7 months of goods imports and 18.2 months of goods and services imports, according to the National Bank. ‘Based on imports up to five months of the fiscal year 2082/83, the foreign exchange reserves held by the banking sector appear to be sufficient to cover 21.7 months of goods imports and 18.2 months of goods and services imports,’ the report states.

The balance of payments position has also had a positive impact on foreign exchange reserves as it has gone into surplus. The balance of payments position has been seen in surplus by Rs 421.89 billion in the five months of the current fiscal year. While in the same period of the last fiscal year, the balance of payments position was in surplus by Rs 225.34 billion.

The balance of payments position indicates the difference between the amount leaving and entering the country. When the amount entering the country is more than leaving the country, the balance of payments goes into surplus. According to the report, the balance of payments position in US dollars is in surplus by Rs 2.98 billion. In the same period of the last fiscal year, the balance of payments position was in surplus by Rs 1.68 billion.

Nepal Rastra Bank spokesperson Guru Prasad Poudel said that foreign exchange reserves have also increased as remittances have increased by 35 percent. ‘Liquidity flow has increased due to the increase in remittances and foreign exchange reserves,’ he said, ‘Money supply has increased.’ But the loans of banks and financial institutions are Rs 102 billion in five months. Interest rates have also come to the lower limit of the interest rate corridor.

If interest rates continue to fall, credit cannot flow and liquidity increases, Nepal Rastra Bank will face additional pressure to manage, Poudel said. He said that we have not been able to utilize the potential opportunity for monthly growth in income generation and employment creation to the best of our ability. ‘We had potential opportunities for monthly growth in income generation and employment creation, but we could not do as much as we could,’ he said.

The average market price (consumer price inflation) of goods and services purchased by the general public was 1.63 percent in Mangesh, according to a report by Nepal Rastra Bank. It was 6.05 percent in the same period of the previous fiscal year. Inflation (price inflation) in the food and beverage group was negative by 2.05 percent in Mangesh, while that of the non-food and service group was 3.75 percent. In the same period of the previous year, inflation in these groups was 9.99 percent and 3.92 percent, respectively.

The average inflation for the five months of the fiscal year 2082/83 is 1.55 percent. The average inflation for the same period of the previous year was 4.89 percent. In Mangesh, the annual point consumer price index of the ghee and oil subgroup under the food and beverage group increased by 5.52, that of non-alcoholic beverages by 3.56, and that of dairy products and eggs by 2.44 percent. The annual point consumer price index of the vegetable sub-group has decreased by 8.54, that of spices by 8.43, and that of pulses and legumes by 5.79 percent.

The annual point consumer price index of the miscellaneous goods and services sub-group under the non-food and services group has increased by 18.56, that of education by 7.56, that of clothing and footwear by 5.29, that of tobacco products by 4.15, and that of alcoholic beverages by 3.85 percent. The annual point consumer price index of the insurance and financial services sub-group has decreased by 0.23 percent.

In Mangsir, the annual point consumer price index of the rural area has increased by 1.09 and the annual point consumer price index of the urban area by 1.83 percent.

Despite the decrease in loan interest rates in the five months of the current fiscal year, credit flow has not been able to increase. Despite the continuous decline in deposit and loan interest rates, the credit flow has not increased significantly, according to the data of Nepal Rastra Bank.

Credit investment has expanded by only 1.9 percent between Shrawan and Mangsir of the current fiscal year. According to the report, credit flow from banks and financial institutions to the private sector has increased by 1.9 percent in five months. The credit invested in the private sector has increased by 12.24 billion rupees to 55.99 billion rupees, the report of the Nepal Rastra Bank states.

Compared to the current fiscal year, the credit flow to the private sector is 76 billion rupees less than the five months of the last fiscal year. Such credit had increased by 178.29 billion rupees (3.5 percent) in the same period of the last fiscal year.

The weighted average interest rate of commercial banks' loans in Mangsir 2082 was 7.26 percent, according to the report of the Nepal Rastra Bank. Similarly, development banks' loans are 8.49 percent and finance companies' loans are 9.91 percent. In 2081 Mangsir, the weighted average interest rate of commercial banks' loans was 8.90 percent, development banks' 10.26 percent, and finance companies' 11.48 percent. Spokesperson Poudel also said that various tools were used to keep the interest rate on deposits within the desired range. 'Because of this, the Rastra Bank has also incurred some financial burden.' But we do not look at it in terms of profit and loss,' he said. He said that banks and financial institutions are not very 'motivated' to provide small loans. 'The kinds of rumors that have been circulating in the market recently about small loans. The trend that small loans do not have to be repaid has increased. That also does not seem to motivate banks and financial institutions.'