Inflation is lower than it was during the same period in the previous fiscal year.

0

Nepal Rastra Bank, the country’s central bank, has released a report on the country’s present macroeconomic and financial status, based on data from the first two months of fiscal year 2021/22.

Inflation

Consumption price inflation increased by 3.49 percent on an annual basis in the second of 2021/22, compared to 4.52 percent a year earlier. Inflation in the food and beverage industry was 2.57 percent in the review month, while inflation in the non-food and service industry was 4.22 percent.

Import and export

Comparing the first two months of the current fiscal year with the same period last year, merchandise exports grew 115.4 percent to Rs.44.04 billion, compared to a 10.5 percent gain in the same period the previous year. Exports to India, China, and other nations climbed by 150.7 percent, 20.7 percent, and 31.0 percent, respectively, according to the destination country. Exports of soyabean oil, palm oil, oil cakes, jute goods, and polyster yarn & thread, among other things, grew during the review period, but exports of tea, medicine (Ayurvedic), wire, zinc sheet, and cardamom, among other things, fell during the time under review.

Productive imports climbed by 75.9 percent to Rs.314.52 billion in the first two months of fiscal year 2021/22, declining by 22.1 percent in the same period last year. Imports from India, China, and other nations climbed by 56.7 percent, 76.2 percent, and 141.4 percent, respectively, according to the destination country. Petroleum products, transportation equipment and parts, crude soyabean oil, gold and silver were among the commodities that saw an increase in imports during the review period, whereas imports of chemical fertilizer, cement and tobacco were among the commodities that saw a decrease during the review period.

 

In the first two months of fiscal year 2021/22, the total deficit climbed by 70.8 percent to Rs.270.48 billion. In the same period the previous year, the deficit had shrunk by 24.9 percent. When compared to the same period the previous year, the export-import ratio increased to 14.0 percent in the review period from 11.4 percent the previous year.

Providing Services and Making Remittances

When comparing the review period to the same period the previous year, net services income remained in deficit at Rs.17.52 billion, compared to a deficit of Rs.6.52 billion in the previous year.

of remittances by 6.3 percent to Rs.155.37 billion during the review period, compared to a rise of 8.1 percent during the same time the year before. Compared to the same period the previous year, remittance declined 5.8 percent to $1.31 billion in the review period, whereas they increased 2.6 percent in the previous year’s review period.

Oil and gold are currently trading at high prices.

The price of oil (Brent Crude Oil) on the worldwide market grew by 82.2 percent to US Dollar 75.14 per barrel in mid-September 2021 from US Dollar 41.23 per barrel a year earlier, according to data from the International Energy Agency. The price of gold fell by 10.9 percent to US Dollar 1747.95 per ounce in mid-September 2021, compared to a year earlier when it was US Dollar 1961.80 per ounce.

The current exchange rate is:

From mid-July 2021 to mid-September 2021, the value of the Nepalese rupee in relation to the US dollar increased by 1.5 percent. This was compared to a 2.4 percent increase in the same time the previous year. During the first half of September 2021, the buying exchange rate per US dollar stood at Rs.117.29, down from Rs.119.04 during the first half of July 2021.

Banking

Deposits in banks and financial institutions (BFIs) climbed by 0.7 percent during the review period, as opposed to an increase of 0.5 percent during the same period in the preceding year. Deposits at BFIs increased by 21.7 percent year on year in mid-September 2021, according to the Reserve.

Meanwhile, private sector loan from BFIs climbed by 5.7 percent in the review period, compared to a 0.5 percent increase in the equivalent time of the previous year, according to the World Bank. Credit from BFIs to the private sector climbed by 33.9 percent year on year in mid-September 2021, according to the latest available data.

 

Rates of Interest

Commercial banks’ average base rate fell to 6.89 percent in the second of 2021/22 from 7.83 percent a year earlier, according to the Reserve. Commercial banks’ weighted average deposit rate was 4.92 percent, while their weighted average loan rate was 8.57 percent for the under consideration. In the previous year, these rates were 5.61 percent and 10.18 percent, respectively.

Leave A Reply

Your email address will not be published.