BoP goes surplus, finally
Nepal’s is expected to have a balance of payments (BoP) surplus of Rs 1 billion at the end of the last fiscal year 2010-11 after having been in the red for the last two years.
There has been a sudden rise in the BoP at the end of the fiscal year although it was in deficit by Rs 11.67 billion as of the first 10 months of the current fiscal year.
Nepal Rastra Bank (NRB) governor Yubaraj Khatiwada said that the BoP surged as the country received payment from international government organisations, reimbursement from donors, pensions of ex-British Army personnel and other monies in the final weeks of the fiscal year. However, it is still short of the target of the monetary policy for the fiscal year 2010-11 that sought to maintain a surplus of Rs 9 billion. The monetary policy for the fiscal year 2011-12 seeks to maintain it at a surplus of Rs 5 billion.
As the BoP and inflation targets could not be met in the last fiscal year, the central bank has stressed the need for reforms in the economic policy as a whole. The BoP refers to Nepal’s monetary balance between the amount that goes out of the country and the amount that comes in.
The BoP records all transactions that create demand for and supply of a currency and the possible impact on the exchange rate.
According to NRB, the country’s foreign exchange reserves amounted to Rs 268 billion as of the end of the last fiscal compared to Rs 270 billion in the previous fiscal year 2009-10.
Current foreign exchange reserves are sufficient to import goods for eight months and goods and services for seven months.
16 FIs get 788.7m under spl refinancing
Three development banks and 13 finance companies received refinancing of Rs 788.7 million under the special refinancing facility given by Nepal Rastra Bank as of the end of the last fiscal year. The central bank has provisioned providing refinancing amounting up to 80 percent against good loans in order to ease the liquidity crunch in the banking sector. Under the normal refinancing facility, 17 banks and financial institutions were offered Rs 5.38 billion during the period. Out of that, Rs 3.59 billion has remained outstanding, according to NRB. Nine commercial banks, seven development banks and one finance company received refinancing under this window, according to NRB.
Posted on: 2011-07-22 09:12
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