Thursday, 27th November 2014

BoP surplus of Rs 102.81 b due to increase in remittances


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The overall Balance of Payment (BoP) recorded a surplus of Rs 102.81 billion during the eight months of the current fiscal year 2013/14 compared to a surplus of Rs 11.78 billion during the same period of the previous fiscal year.

According to the current macroeconomic situation of Nepal published by Nepal Rastra Bank (NRB), the current account posted a surplus of Rs 68.41 billion in the review period compared to a surplus of Rs 9.51 billion in the same period of the previous year.

The increase in surplus in the current account was primarily due to a substantial rise in net services, net income, grants as well as a high growth of workers' remittances in the review period, says the central bank in a report.

The Free on Board (FoB)-based merchandise trade deficit increased by 28.1 percent to Rs 381.59 billion during the eight months of 2013/14 while such deficit had grown up by 25.4 percent in the same period of the previous year.

The net service income posted a surplus of Rs 13.89 billion in the review period compared to a surplus of Rs 2.02 billion in the same period of the previous year.

Net transfers registered a growth of 38.5 percent to Rs 415.44 billion in the review period compared to a growth of 16.8 percent in the same period of the previous year.

Under the transfers, workers’ remittances surged by 34.1 percent to Rs 356.72 billion compared to an increase of 22.2 percent in the same period of the previous year.

On a monthly basis, remittance inflows decreased by 3.2 percent in February/March compared to the value of the previous month of this fiscal year.