Rs 293.97 billion deficit in current account

Kathmandu, 15 July (2021) - The current account has remained at a deficit of Rs 293.97 billion in the first 11 months of the current fiscal year.  

As per the details released by the Nepal Rastra Bank today, the current account deficit has increased in this period as compared to correspondent period of the previous fiscal year. The current account deficit was Rs 62.56 billion in the same period of the previous fiscal year. 

In the US dollar term, the current account has registered a deficit of 2.51 billion in the review period as compared to a deficit of 578.5 billion in the same period of the previous year.

Similarly, the capital transfer has increased by 8.4 per cent and reached to Rs 14.15 billion and net foreign direct investment (FDI) has decreased by 13.4 per cent to Rs 16.20 billion. 

In the same period of the previous fiscal year, capital transfer and net FDI   amounted to Rs 13.05 billion and 18.72 billion respectively. 

The balance of payments (BOP) registered a deficit of Rs 15.15 billion in the review period against a surplus of Rs 179.37 billion in the same period of the previous fiscal year. 

In the US dollar term, the BOP recorded a deficit of 140.8 billion in the review period against a surplus of 1.50 billion in the same period of the previous year.

According to the central bank, the total foreign exchange reserve has decreased 2.6 per cent to stand at over Rs 1,365 billion until June 14, 2021 as compared to more than Rs 1,401 billion until July 15, 2020, the last day for the fiscal year, 2019/20. 

Out of the total foreign exchange reserve, the reserve the Nepal Rastra Bank has decreased 2.3 per cent to reach over Rs 1,197 billion against more than Rs 1,226 billion in the same period last fiscal year. 

The total foreign exchange reserve banks and financial institutions in Nepal have has shrunk 4.4 per cent to Rs 168 billion against over Rs 275 billion in the corresponding period last fiscal year.