Current Macroeconomic and Financial Situation of Nepal
Major Highlights
CPI-based Inflation remained 3.49 percent on y-o-y basis.
Imports increased 75.9 percent and exports increased 115.4 percent.
Remittances decreased 6.3 percent in NPR terms and 5.8 percent in USD terms.
Balance of Payments remained at a deficit of Rs.83.41 billion.
Gross foreign exchange reserves stood at USD 11.14 billion.
Federal Government spending amounted to Rs.89.94 billion and revenue collection Rs.168.58
billion.
Broad money (M2) expanded 0.2 percent. On y-o-y basis, M2 expanded 20.9 percent.
Deposits at BFIs increased 0.7 percent and claims on the private sector increased 6.5 percent.
On y-o-y basis, deposits increased 21.7 percent and claims on the private sector 32.5 percent.
The current account remained at a deficit of Rs.106.75 billion in the review period against a surplus of Rs.25.16 billion in the same period of the previous year. In the US Dollar terms, the current account registered a deficit of 901.5 million in the review period against a surplus of 210.0 million in the same period last year. In the review period, capital transfer decreased 36.3 percent to Rs.1.25 billion and net foreign direct
investment (FDI) increased 24.6 percent to Rs.3.04 billion. In the same period of the previous year, capital transfer and net FDI amounted to Rs.1.96 billion and Rs.2.44 billion respectively.
Balance of Payments (BOP) remained at a deficit of Rs.83.41 billion in the review period against a surplus of Rs.67.63 billion in the same period of the previous year. In the US Dollar terms, the BOP remained at a deficit of 704.3 million in the review period against a surplus of 566.2 million in the
same period of the previous year. Foreign Exchange Reserves
Gross foreign exchange reserves decreased 6.6 percent to Rs.1306.95 billion in mid-September 2021 from Rs.1399.03 billion in mid-July 2021.
In the US Dollar terms, the gross foreign exchange reserves decreased 5.2 percent to 11.14 billion in mid-September 2021 from 11.75 billion in mid-July 2021.
Of the total foreign exchange reserves, reserves held by NRB decreased 7.7 percent to Rs.1148.69 billion in mid-September 2021
from Rs.1244.63 billion in mid-July 2021. Reserves held by banks and financial institutions (except NRB) increased 2.5 percent to Rs.158.27
billion in mid-September 2021 from Rs.154.39 billion in mid-July 2021. The share of Indian currency in total reserves stood at 24.2 percent in mid-September 2021.