BoP surplus on record-breaking streak

KATHMANDU, JAN 21 -

Balance of payment (BoP) surplus has continued to break the records with it reaching to a high of Rs 61.19 billion as of the first five months of the current fiscal year, thanks to increased remittance and service account such as tourism income.

BoP, the record of all transactions made between one particular country and all other countries during a specified period of time, had hit a record high of Rs 46.31 billion as of the first four months this year since the compilation of the BoP began in the FY 1974-75.

According to a Nepal Rastra Bank report on macro-economic situation of the country, remittance grew by 37.9 percent to Rs 133.19 billion in five months this year.

Likewise, tourism income also witnessed a rise of 37 percent to Rs 14.89 billon as of the first five months. Foreign exchange reserve also reached a record high of Rs 368.63 billion during the review period, which the central bank said is sufficient for financing merchandise imports of 10.6 months and merchandise and service imports of 9.3 months.

The slide in inflation in recent months has continued and it was recorded at 7.5 percent as of the five months, a one point drop from the figure of the four months. As prices of both food and other items dropped in the fifth month compared to the previous month, inflation also came down, according to the NRB.

NRB officials said good harvest in the country and negative food inflation in neighbouring India contributed to the drop in inflation. Food inflation is below the non-food inflation since the fourth month this year after several years.

Source: Kantipur