Nepal’s remittance earnings increased 27 percent to Rs689.88 billion in the first seven months of the current fiscal year, as compared to the same period last year, as the number of Nepali youths opting for foreign jobs continues to rise sharply.

According to Nepal Rastra Bank, the country’s central bank, the number of Nepali workers taking approval for foreign employment increased 57.3 percent to 314,767 in the review period. The number of Nepali workers [renew entry] taking approval for foreign employment increased 10 percent to 167,708 in the review period.

In total, 482,475 Nepalis left the country for foreign jobs in the first seven months of the current fiscal year, starting from mid-July to mid-February.

As a result of increased remittance earnings, the gross foreign exchange reserves increased 13.8 percent to Rs1,383.33 billion in mid-February 2023 from Rs1,215.80 billion in mid-July 2022.

In US dollar terms, the gross foreign exchange reserves increased 10.2 percent to $10.50 billion in mid-February 2023 from $9.54 billion in mid-July 2022.

Of the total foreign exchange reserves, reserves held by Nepal Rastra Bank increased 16.2 percent to Rs1,228.05 billion in mid-February 2023 from Rs1,056.39 billion in mid-July 2022.

Reserves held by banks and financial institutions, except Nepal Rastra Bank, decreased 2.6 percent to Rs155.28 billion in mid-February 2023 from Rs159.41 billion in mid-July 2022.

The share of Indian currency in total reserves stood at 22.4 percent in mid-February 2023, according to the central bank’s report.

Based on the imports for seven months of 2022-23, the foreign exchange reserves of the banking sector are sufficient to cover the prospective merchandise imports of 10.8 months, and merchandise and services imports of 9.4 months.

The central bank said that the current account remained at a deficit of Rs29.64 billion in the review period compared to a deficit of Rs411.34 billion in the same period of the previous year.

In the review period, net foreign direct investment (FDI) remained at Rs1.04 billion. In the same period of the previous year, net FDI amounted to Rs.16.29 billion.

The country’s balance of payments (BOP) remained at a surplus of Rs133.21 billion in the review period as compared to a deficit of Rs247.03 billion in the same period of the previous year.

In US dollar terms, the BOP remained at a surplus of $1.01 billion in the review period against a deficit of $2.07 billion in the same period of the previous year.

The central bank said that the year-on-year consumer price inflation remained at 7.88 percent in mid-February as compared to 6.24 percent a year ago.

Food and beverage inflation stood at 6.19 percent whereas non-food and service inflation rose to 9.22 percent in the review month. Under the food and beverage category, the price index of restaurant and hotel subcategories increased by 15.24 percent, cereal grains and their products by 12.39 percent, tobacco products by 10.83 percent, alcoholic drinks by 8.78 percent, and spices by 8.04 percent.

Under the non-food and services category, the price index of the transportation subcategory increased by 15.58 percent, health by 10.39 percent, housing and utilities by 9.78 percent, furnishing and household equipment by 9.00 percent and recreation and culture by 8.81 percent.

In the review month, consumer price inflation in the Kathmandu valley, Tarai, Hill and Mountain regions remained at 8.47 percent, 7.82 percent, 7.30 percent and 7.92 percent respectively.