According to Nepal Rastra Bank, the country’s Balance of Payments (BOP) remained at a deficit of Rs.22.63 billion in the review period compared to a deficit of Rs.38.75 billion in the same period of the previous year. In US Dollar terms, the BOP remained at a deficit of 177.68 million in the review period compared to a deficit of 325.53 million in the same period of the previous year.

The current account remained at a deficit of Rs.16.26 billion in the review period compared to a deficit of Rs.47.29 billion in the same period of the previous year. In US Dollar terms, the current account registered a deficit of 127.68 million in the review period compared to the deficit of 397.36 million in the same period last year.

Foreign exchange reserves in descending order:
Gross foreign exchange reserves decreased 1.5 percent to Rs.1197.85 billion in mid-August 2022 from Rs.1215.80 billion in mid-July 2022. In the US dollar terms, the gross foreign exchange reserves decreased 1.2 percent to 9.42 billion in mid-August 2022 from 9.54 billion in mid-July 2022 Of the total foreign exchange reserves, reserves held by NRB decreased 0.7 percent to Rs.1049.11 billion in mid-August 2022 from Rs.1056.39 billion in mid-July 2022.

Reserves held by banks and financial institutions (except NRB) decreased 6.7 percent to Rs.148.74 billion in mid-August 2022 from Rs.159.41 billion in mid-July 2022. Based on the imports of first month of 2022/23, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 9.4 months, and merchandise and services imports of 8.0 months.

Price increase by 8.26 percent:
The y-o-y consumer price inflation stood at 8.26 percent in the first month of FY 2022/23 compared to 4.35 percent a year ago. Food and beverage inflation stood at 7.11 percent whereas non-food and service inflation stood at 9.18 percent in the review month.

Under the food and beverage category, the prices of ghee & oil, fruits, restaurant & hotel, alcholic drinks and milk products & eggs sub-categories rose by 19.58 percent, 18.79 percent, 11.84 percent, 10.24 and 10.19 percent respectively on y-o-y basis.

Likewise, under the non-food and services category, the prices of transportation, health, furnishing & household equipment, education and housing & utilities sub-categories rose by 23.88 percent, 10.54 percent, 9.04 percent, 8.11 percent and 7.86 percent respectively on y-o-y basis.