See the monetary highlights as per the 2 months report of Nepal Rastra Bank

Tue, Oct 30, 2018 3:05 PM on Economy, Latest,

In two months of 2018/19, merchandise exports increased 8 percent to Rs.14.7 billion compared to an increase of 3.2 percent in the same period of the previous year. Destination-wise, exports to India, China and other countries increased 13.6 percent, 11.4 percent and 1.0 percent respectively in the review period.

The growth in merchandise imports remained elevated at 38.5 percent to Rs.232.35 billion in the review period compared to an increase of 12.6 percent in the same period of the previous year. Source-wise, imports from India, China and other countries increased 38.9 percent, 13.2 percent and 55.2 percent respectively in the review period.

The current account registered a deficit of Rs.35.56 billion in the review period because of a significant rise in imports. The current account had registered a deficit of Rs.19.74 billion in the same period of the previous year.

The overall BOP remained at a deficit of Rs.25.45 billion in the review period compared to a deficit of Rs.5.87 billion in the same period of the previous year.

The budget surplus of the Government of Nepal (GoN) increased to Rs.55.93 billion in two months of 2018/19 from Rs.19.18 billion in the corresponding period of the previous year.

In the review period, total government expenditure (cash basis) stood at Rs.66.33 billion. Such expenditure was Rs.72.38 billion in the corresponding period of the previous year.

Deposits and Credit

Domestic credit increased 1.1 percent in the review period in contrast to a decrease of 1.7 percent in the corresponding period of the previous year. On y-o-y basis, domestic credit increased 28.4 percent in mid September 2018.

Deposits at Banks and Financial Institutions (BFIs) increased 1.3 percent in the review period compared to a growth of 2.4 percent in the corresponding period of the previous year. On y-oy basis, deposits at BFIs expanded 17.9 percent in mid-September 2018.

The share of demand, saving and fixed deposits in total deposits stood at 7.9 percent, 34.2 percent and 45.7 percent respectively in mid-September 2018. Such shares were 8.3 percent, 35.6 percent and 43.1 percent respectively a year ago.

Credit to the private sector from BFIs increased 2.0 percent in the review period compared to a growth of 2.1 percent in the corresponding period of the previous year. In the review period, private sector credit increased 2.0 percent from commercial banks, 2.7 percent from development banks and 0.5 percent from finance companies. Of the total outstanding credit of BFIs in mid-September 2018, 63.1 percent is against the collateral of land and building and 14.3 percent against the collateral of current assets (such as agricultural and non-agricultural products)

In the review period, NRB mopped up Rs.85.35 billion liquidity through open market operations. Of which, Rs.79.65 billion was mopped up under deposit collection auction and Rs.5.70 billion through reverse repo auction.

Stock Market

The NEPSE index on y-o-y basis decreased 17.9 percent to 1256.5 points in mid-September 2018. This index had decreased 15.7 percent to 1530.3 points in mid-September 2017. Such index was 1212.4 points in mid-July 2018.

The ratio of market capitalization to GDP stood at 49.8 percent in mid-September 2018. This ratio was 67.2 percent a year ago. Of the total market capitalization, the share of banks, financial institutions and insurance companies stood at 80.8 percent, hydropower 4.2 percent, manufacturing and processing companies 2.7 percent, hotels 1.7 percent, trading 0.1 percent, and others 10.5 percent respectively.