Print Edition - 2015-06-20 | MONEY
BoP surplus doubles, thanks to remittance
- NRB report on macro economy
Jun 19, 2015-Balance of payments (BoP) surplus doubled in a month, reaching Rs101.15 billion as of Mid-May, against Rs49.4 billion as of Mid-April, thanks to increased remittance and decreased imports after the earthquake.
BoP is the balance of monetary inflow and outflow and a certain level of surplus makes the country capable of purchasing goods and services from abroad.
The country received Rs63 billion remittance in the 10th month (Mid-April to Mid-May) alone, up Rs8 billion compared to what the country received in the ninth month, according the latest NRB report on the country’s macro-economy.
Following the April 25 earthquake, remittance inflow through the formal channel surged, while export-import activities almost halted. As of the 10th month, remittance inflow rose 10 percent year-on-year to Rs489.07 billion.
After a sluggish start and negative growth in the first three months, remittance inflow started to grow. NRB officials said the government’s planned action against Hundi operators and migrant workers sending more money home after the earthquake resulted in the massive rise in remittance. As a result, NRB expects a BoP surplus double of what was projected earlier at the end of this fiscal.
NRB Spokesperson Min Bahadur Shrestha said the BoP surplus is expected to top Rs100 billion, almost double of the projected Rs55 billion in mid-term review of the monetary policy.
“As there is no possibility of massive expenditure in imports and remittance is surging, it will top Rs100 billion,” said Shrestha.
Published: 20-06-2015 08:19