Corona impacts, Rs 168 billion loss on economy: NRB

May Tue 2020 08:02:54

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Corona impacts, Rs 168 billion loss on economy: NRB

This is stated in the third quarterly review of the monetary policy of Nepal Rastra Bank (NRB), which has caused a loss of more than Rs 168 billion to the Nepalese economy due to the corona virus infection. With an average economic growth of 7.3 percent in the last three years, the nationwide lock-down caused by the corona virus in the current fiscal year has had a serious impact on the economy, according to the NRB.

According to the NRB, the slowdown in foreign trade is due to the lockdown by Nepal and its trading partners. Exports of Rs 7.16 billion and imports of Rs 190 million have been made from last April to April. Exports stood at Rs 17.31 billion and imports at Rs 229.03 billion in the corresponding period of the previous year.

Statistics also show that remittances to Nepal have halved due to the lock-down. NRB estimates that remittance of Rs. 75.48 billion was received in the period from last April to April. Remittance of Rs. 143.11 billion was received in the corresponding period of the previous year. Tourism income of Rs 5.10 billion was received in March last year while Rs 1.60 billion was received in April.

Banks and financial institutions have collected Rs 83 billion in deposits and invested Rs 22 billion in loans during the period from April to April.

NRB says that there is convenient liquidity in the banking system from last April to April. The banking system has an average liquidity of Rs 49.2 billion in April.

Liquidity of Rs. 31.69 billion has flowed from Nepal Rastra Bank in the period from last April to April. Under this, net liquidity of Rs. 30.13 billion has been provided through permanent liquidity facility and Rs. 1.56 billion through overnight repo.

During the period from April to April, the interbank turnover was Rs. 153.20 billion between commercial banks and Rs. 8.3 billion between financial institutions, excluding nine commercial banks. The interbank transaction rate between commercial banks stood at 4.06 percent in April compared to 2.13 percent in April last year, according to NRB.