March 11: The country’s current account remained at a surplus of Rs 161.69 billion in mid-February against a deficit of Rs 40.16 billion in the same period of the previous year.

According to the latest report of Nepal Rastra Bank, the current account in terms of the US dollar registered a surplus of 1.22 billion in the review period against a deficit of 314.6 million in the same period last year.

The Current Macroeconomic and Financial Situation Report of Nepal based on seven months’ data released by the central bank on Sunday showed that capital transfer decreased 29.0 percent to Rs 3.80 billion and net foreign direct investment (FDI) remained a positive of Rs 5.18 billion in the review period.

In the same period of the previous year, capital transfer amounted to Rs 5.35 billion and net FDI amounted to Rs 1.04 billion.

Balance of Payments (BOP) remained at a surplus of Rs 297.72 billion in the review period against a surplus of Rs 128.55 billion in the same period of the previous year. In the US Dollar terms, the BOP remained at a surplus of 2.24 billion in the review period against a surplus of 975.7 million in the same period of the previous year, the report added.

Gross foreign exchange reserves increased 19.9 percent to Rs 1844.94 billion in mid-February 2024 from Rs 1539.36 billion in mid-July 2023. In the US dollar terms, the gross foreign exchange reserves increased 18.6 percent to 13.89 billion in mid-February 2024 from 11.71 billion in mid-July 2023.

Of the total foreign exchange reserves, reserves held by NRB increased 20.7 percent to Rs 1623.92 billion in mid-February 2024 from Rs 1345.78 billion in mid-July 2023. Reserves held by banks and financial institutions (except NRB) increased 14.2 percent to Rs 221.02 billion in mid-February 2024 from Rs 193.59 billion in mid-July 2023. The share of Indian currency in total reserves stood at 22.6 percent in mid- February 2024.

Based on the imports of seven months of 2023/24, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 14.7 months, and merchandise and services imports of 12.3 months. T