September 17: The country’s current account remained at a surplus of Rs 12.99 billion in the first month of the current fiscal year against a deficit of Rs 15.13 billion in the same period of the previous year.

According to the Current Macroeconomic and Financial Situation Report of Nepal published by the Nepal Rastra Bank (NRB), the current account in terms of US dollar registered a surplus of 98.5 million in the review period against a deficit of 118.8 million in the same period last year.

In the review period, capital transfer decreased 65.9 percent to Rs 272.6 million and net foreign direct investment (FDI) remained a positive of Rs 2.65 billion. In the same period of the previous year, capital transfer amounted to Rs 800.3 million and the net FDI amounted to a negative of Rs 1.40 billion, added the report.

According to the central bank, Balance of Payments (BOP) remained at a surplus of Rs 32.90 billion in the review period against a deficit of Rs 19.76 billion in the same period of the previous year. In the US Dollar terms, the BOP remained at a surplus of 249.5 million in the review period against a deficit of 155.2 million in the same period of the previous year.

Similarly, the gross foreign exchange reserves increased 2.2 percent to Rs 1573.12 billion in mid-August 2023 from Rs 1539.36 billion in mid-July 2023. In the US dollar terms, the gross foreign exchange reserves increased 1.2 percent to 11.85 billion in mid-August 2023 from 11.71 billion in mid-July 2023. Of the total foreign exchange reserves, reserves held by NRB increased 2.9 percent to Rs 1385.24 billion in mid-August 2023 from Rs 1345.78 billion in mid-July 2023, added the latest report.

Similarly, the reserves held by banks and financial institutions (except NRB) decreased 2.9 percent to Rs 187.89 billion in mid-August 2023 from Rs 193.59 billion in mid-July 2023. The share of Indian currency in total reserves stood at 21.9 percent in mid-August 2023.