Kathmandu: The current account of Nepal remained at a surplus of Rs 179.48 billion in the first nine months of the current fiscal year against a deficit of Rs 60.43 billion in the same period of the previous year, according to the latest report of Nepal Rastra Bank.

The Current Macroeconomic and Financial Situation Report of Nepal unveiled by the central bank on Sunday states that the current account, in terms of the US dollar, registered a surplus of 1.35 billion in the review period against a deficit of 468.3 million in the same period last year.

In the review period, capital transfer decreased 19.2 percent to Rs 4.78 billion and net foreign direct investment (FDI) remained a positive of Rs 6.48 billion, the NRB report added.

In the same period of the previous year, capital transfer amounted to Rs 5.91 billion and net FDI amounted to Rs 2.62 billion.

Similarly, the Balance of Payments (BOP) remained at a surplus of Rs 365.16 billion in the review period against a surplus of Rs 174.28 billion in the same period of the previous year.

In the US Dollar terms, the BOP remained at a surplus of 2.75 billion in the review period against a surplus of 1.32 billion in the same period of the previous year.

The central bank’s report further mentions that the gross foreign exchange reserves increased 24.2 percent to Rs 1911.86 billion in mid-April 2024 from Rs 1539.36 billion in mid-July 2023.

In the US dollar terms, the gross foreign exchange reserves increased 22.7 percent to 14.36 billion in mid-April 2024 from 11.71 billion in mid-July 2023.

Of the total foreign exchange reserves, reserves held by NRB increased 25.4 percent to Rs 1688.21 billion in mid-April 2024 from Rs 1345.78 billion in mid-July 2023. Likewise, the reserves held by banks and financial institutions (except NRB) increased 15.5 percent to Rs 223.65 billion in mid-April 2024 from Rs 193.59 billion in mid-July 2023, the report added.

The share of Indian currency in total reserves stood at 21.6 percent in mid-April 2024.

Based on the imports of nine months of 2023/24, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 15 months, and merchandise and services imports of 12.5 months.

The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 33.5 percent, 104 percent and 28.9 percent respectively in mid-April 2024. Such ratios were 28.8 percent, 83.0 percent and 25.0 percent respectively in mid-July 2023.