Warning: sizeof(): Parameter must be an array or an object that implements Countable in /home/sharebaz/public_html/templates/shootwrap/katchie/lib/responsive.php on line 276

Kathmandu, December 24- Nepal’s foreign exchange reserves have slumped to a 32-month low despite robust growth in remittance income and downward revision in foreign exchange facility for Nepalis visiting overseas, raising the spectre of the country facing a balance of payments crisis if the problem continues to grow.

Nepal’s foreign exchange reserves stood at $9.4 billion in November, according to the latest macroeconomic report of Nepal Rastra Bank, the central bank, released today. The reserves last stood at this level in March 2016.

Nepal’s foreign exchange reserves have been contracting since the fiscal year began in July, as imports have surged. The current reserves are sufficient to cover prospective merchandise imports of 9.2 months, and merchandise and services imports of 7.9 months, central bank says.

Foreign exchange reserves shrink when outflow of money from the economy exceeds inflows. Outflow of money from the economy surpassed inflows by Rs 57.3 billion in the first four months of the current fiscal year, the central bank report says. This means Nepal recorded a balance of payments deficit of Rs 57.3 billion in between mid-July and mid-November.

The outflow of money from the economy exceeded inflows despite 36.4 per cent hike in remittance income to Rs 312.3 billion in the first four months of the current fiscal year. Remittance income had dipped 1.4 per cent in the same period a year ago.
A surge in transfer of money by Nepalis working abroad could not prevent the foreign exchange reserves from falling because of 35.8 per cent hike in imports in the first four months of the current fiscal year. Nepal’s import bill had gone up by 18.1 per cent in the same period a year ago.

Nepal spent Rs 483.76 billion to import a range of merchandise goods in the first four months of this fiscal year, with petroleum products, vehicles and spare parts, MS billet, other machinery and parts, and aircraft spare parts topping the list. Exports, on the other hand, grew by a modest 11 per cent in the four-month period to Rs 29.3 billion, the central bank report shows. This mismatch in growth of imports and exports widened the country’s trade deficit by 37.8 per cent to Rs 454.5 billion in the first four months of the current fiscal year.

Also, net services deficit rose to Rs 13.2 billion in the four-month period from Rs three billion in the same period a year ago, as spending made by Nepalis abroad superseded income generated from foreign tourists who visited Nepal. Nepalis spent Rs 34.9 billion overseas in the first four months of this fiscal year but generated Rs 25.1 billion from foreigners who visited Nepal. To reduce the outflow of money, the central bank in November prevented Nepalis visiting foreign countries from acquiring foreign exchange facility of more than $1,500 from $2,500 in the past.

Among others, foreign direct investment dipped 51.3 per cent to Rs 4.9 billion in the first four months of current fiscal, which also caused foreign exchange reserves to contract.

Source: The Himalayan


Warning: sizeof(): Parameter must be an array or an object that implements Countable in /home/sharebaz/public_html/templates/shootwrap/katchie/lib/responsive.php on line 276

Corporate News

HIDCL, Power China to build 762MW Tamor reservoir project

Kathmandu, September 16- The Hydroelectricity Investment and Development Company Ltd (HIDCL) and state-owned Power China Corporation have jointly submitted a project development proposal at the Investment Board Nepal (IBN) to build the 762-megawatt Tamor reservoir project, which will cover Panchthar, Taplejung, Terhathum and Sankhuwasabha districts.

Read more ...

Security audit of BFIs compulsory

Kathmandu, September 10- Nepal Rastra Bank (NRB) has made it mandatory for banks and financial institutions (BFIs) to conduct an audit of their information and technology (IT) system.

Read more ...

Age limit set for CEOs, directors at BFIs

KATHMANDU: Nepal Rastra Bank has set an age bar for board of directors and chief executive officers of banks and financial institutions (BFIS).

Read more ...

Sebon unveils policies and programs for FY 2019/20

KATHMANDU, July 16: The Securities Board of Nepal (Sebon) has unveiled a 72-point Policy and Program for Fiscal Year 2019/20 for the development of the securities and commodities exchange market.

Read more ...
Symbol % Change Last Price Turnover
NEF 14.2857 8.0 107,211.0
NIBSF1 12.5000 9.0 168,800.0
GGBSL 7.5188 286.0 22,380.0
NLG 4.7872 591.0 1,746,032.0
BFC 4.4444 94.0 70,645.0
Symbol % Change Last Price Turnover
MSLB -6.2500 870.0 970,965.0
SLICL -3.7313 258.0 2,250,230.0
LLBS -3.2738 650.0 924,365.0
OHL -2.5974 450.0 317,580.0
UPCL -2.5000 78.0 95,660.0
Symbol % Change Last Price Turnover
PRVU -1.4870 265.0 19,998,849.0
MEGAPO 0.0000 104.0 15,717,208.0
SRBL 0.0000 239.0 11,020,438.0
ADBL 0.0000 414.0 6,348,448.0
NABIL -0.2625 760.0 6,207,023.0