Kathmandu: Although the country’s domestic economy is sluggish, there has been a good improvement in the external sector of the economy. According to the 6-month data published by the National Bank, more foreign exchange is entering the country than leaving it.

That is why the balance of payments situation is continuously in surplus. The size of remittances is increasing . The size of the country’s foreign exchange reserves has also increased significantly to 2316.84 billion. This has made it possible for the country to meet the import of goods and services for 14 months.

Especially, despite the government spending billions and holding an investment conference, it is a reality that foreign direct investment (FDI) has not been able to inflow. However, the latest data shows a slight improvement in FDI. As of December of the current fiscal year, 6.5 billion rupees of direct foreign investment (equity only) have been inflow. This is 43.14 percent or 1.96 billion rupees more than the same period of the last fiscal year. In the same period of the previous year, such direct foreign investment (equity only) had inflows of Rs 4.54 billion.

The country’s total foreign exchange reserves have increased by 13.5 percent to Rs 2.3 trillion 16 billion 84 million. This is the data up to Poush of the current fiscal year. In US dollars, such reserves have increased by 10.3 percent compared to Ashar and have reached Rs 16.84 billion. Of which, Nepal Rastra Bank has foreign exchange reserves of Rs 2.0 trillion 72.34 billion and banks and financial institutions (excluding Nepal Rastra Bank) have foreign exchange reserves of Rs 2.4 trillion 44.5 billion. The share of Indian currency in such reserves is 24.3 percent.

Overall, based on the six months of imports in the fiscal year 2081/82, the foreign exchange reserves held by the banking sector are sufficient to cover 17.3 months of goods imports and 14.4 months of goods and services imports, the Rastra Bank has said.

As foreign exchange inflows are more than outflows, the balance of payments position is in surplus of Rs 249 billion 260 million in the first six months. In the same period last year, the balance of payments position was in surplus of Rs 273 billion 520 million. In US dollar terms, the balance of payments position, which was in surplus of Rs 260 million in the same period last year, is in surplus of Rs 1.82 billion in the review period. Along with this, the country’s current account is in surplus of Rs 148 billion 170 million.

In the same period last year, it was in surplus of Rs 162 billion 560 million. In US dollar terms, it is in surplus of Rs 1.88 billion. Similarly, net capital transfer is Rs 4.29 billion.