Weekly Economic Update (24 September 2021–30 September 2021)
1. NRB has directed the banks to limit the provision of foreign currency to USD 200 in cash. This directive comes after Nepal recorded a negative Balance of Payment of USD 38.7 billion in the first month of current fiscal year. [1]
2. Nepal’s foreign exchange reserves reduced by 2.8% to USD 11.42 billion. There is a sufficient foreign currency to purchase goods and services for only 9.3 months and settle payments of goods and services for 8.3 months. [2]
3. The opposition party CPN-UML has objected government’s decision of not requiring disclosure of source of income for investments in areas other than liquor and tobacco industries citing it as the government’s attempt to legalize black money. [3]
4. Government of Nepal has formed an investigation committee to study the conditions of domestic airlines to make the air service more robust, safe, and effective; after a Buddha Air flight experienced technical difficulties during landing on Monday. [4]
5. An ordinance issued on COVID-19 management has removed the provision of fast-track procurement of medical goods, medicines, vaccines, and oxygen by governmental agencies. The existing procurement laws will now need to be followed. [5]
6. Nepal imported 143 units of low emission vehicles during the first two months of current fiscal year, comparatively Nepal had imported only 131 units of low emission vehicles during the last fiscal year. [6]
7. Commercial banks increased their interest rates on deposits to more than 10% on September 17 in an effort to increase their liquidity. The following week, deposits decreased by 68% and remained at NPR 8.32 billion. [7]
8. Birgunj Customs Office collected a total revenue of NPR 40.6 billion so far in this current fiscal year, receiving 20.5% of the targeted annual collection of NPR 198.1 billion. [8]
9. Nepal’s trade deficit increased by 70.6%, reaching NPR 129.97 billion during the first month of the current fiscal year. The export-import ratio increased to 13.8% in the first month. Merchandise export increased by 115.9% to reach NPR 20.76 billion in the period. [9]
10. Net Foreign Direct Investment (FDI) decreased by 65.5% to NPR 480.6 million and the capital transfer decreased by 38% to NPR 679.7 million in the first month of the fiscal year. In the same period of last fiscal year, net FDI was NPR 1.39 billion and capital transfer was NPR 1.1 billion. [10]
