Remittance has seen an increasing trend in past few months according to recent data of Nepal Rastra Bank.
NRB published Current Macroeconomic and Financial Situation of Nepal for last 11 months which showed a moderate increase of 3.8% in total remittance compared to that of last year. Total 904 billion rupees have been received as remittance during this period. Last year however, remittance increased by huge 12.6% during same period compared to prior year.
Increasing remittance also helped to strengthen dollar reserve to some extent but in comparison to that of last year, gross foreign exchange reserves decreased by 15.9 percent. Foreign exchange reserve stood at Rs.1399.03 billion in mid-July 2021 which fell to Rs.1176.84 billion in mid-June 2022. This reserve will be sufficient to cover the prospective merchandise imports of 7.53 months. Similarly, merchandise and services import for 6.73 months could be covered by this reserve.
Of the total foreign exchange reserves, reserves held by NRB had decreased 17.1% while reserves held by banks and financial institutions (except NRB) decreased by 6.1%.