Remittance inflow rate slows down in Bhadra; Rs 42.19 arba received

ShareSansar, October 8:

Remittance inflow in the country has observed a slowdown in the first month of the current fiscal year 2071/72.

According to a report of Nepal Rastra Bank (NRB), remittance inflow in the country increased marginally by 0.8 percent in Bhadra against the comparison of the 23.8 percent surge in the corresponding period of the last fiscal year 2070/71. During the review period, the migrant workers sent a total of Rs 42.19 arba as remittance.
 
However, in terms of US dollar, workers’ remittances increased by 0.1 percent to USD 434.9 million compared to an increase of 14.1 percent in same period of the previous year.

Experts have been attributing the rise in the flow of remittance to the excessive liquidity surplus in the banking system.

Thanks to the flow of migrant workers’ remittance, the country has been able to manage enough foreign exchange reserve despite the ballooning trade deficit.

The gross foreign exchange reserve has increased by 1.3 percent to Rs 673.80 arba in Bhadra from a level of Rs 665.41 billion as of Shrawn. Such reserves had increased by 4.2 percent to Rs 555.88 arba in the same period of the previous year. Out of total reserves, NRB's reserves increased by 1.2 percent to Rs 579.38 arba in the review period from a level of Rs 572.40 arba as of Shrawn.

The gross foreign exchange reserves in USD terms increased marginally by 0.2 percent to USD 6.95 billion in Bhadra. Such reserves had increased by 1.1 percent in the same period of the previous year.

“Based on the trend of import during the first month of the current fiscal year, the current level of reserves is sufficient for financing merchandise imports of 11.8 months and merchandise and service imports of 10.1 months,” the report stated.