Kathmandu, August 19
The country’s annual average inflation stood at 5.44 per cent in the last fiscal year, remaining within the expected ceiling.
According to the Current Macroeconomic and Financial Situation of Nepal (based on annual data) released by the Nepal Rastra Bank today, imports decreased by 1.2 per cent and exports by 3 per cent last year. In the previous year, imports had decreased by 16.1 per cent and exports by 21.4 per cent, respectively.
Remittance inflows increased by 16.5 per cent to reach Rs. 1445.32 billion, compared to an increase of 23.2 per cent in the previous year. In US dollar terms, remittance inflows rose by 14.5 per cent to reach USD 10.86 billion in the review year, compared to a 13.9 per cent increase in the previous year, according to the report.
Likewise, the balance of payments remained in surplus, amounting to Rs. 502.49 billion compared to a surplus of Rs. 285.82 billion in the previous year.
Gross foreign exchange reserves stood at USD 15.27 billion, sufficient to cover 13 months of merchandise and services imports, as stated in the report.
Broad money (M2) expanded by 13.0 per cent, while deposits at Banks and Financial Institutions (BFIs) increased by 13.0 per cent. Credit to the private sector increased by 5.8 per cent in the review year. Total deposits at BFIs stood at Rs. 6452 billion, and private sector credit amounted to Rs. 5074 billion.
