Addressing an interaction programme organised by NRB on the occasion of its 58th anniversary here Saturday, Governor Dr Khatiwada said although there was a control in monetary status, inflation was high due to various national and international causes.[break]
High inflation rate in the major trading partner countries, weak domestic production, energy crisis and price rise of petroleum products have caused a negative impact on the country´s economy, he said.
High liquidity seen in the beginning of the current fiscal year has now come to an end, the NRB governor said and expressed his hope remaining problems would be resolved slowly and gradually.
The gross domestic product growth rate in the basic price is expected to stand at 3.6 per cent in the current fiscal year, he added. The 10.2 per cent increment in the CPI inflation in the past eight months was challenging, he said, adding that government budget based on cash flow has reached Rs. 47.2 billion in the past eight months.
According to the NRB Governor, in this period, import rate has increased by five percent compared to the corresponding period last year whereas export rate has gone up by 2.1 per cent , leading to a rise in trade deficit by 25.5 per cent.
Likewise, under the transfers, workers’ remittances surged by 22.2 percent to Rs. 266.09 billion compared to an increase of 34.7 percent in the period.
The gross foreign exchange reserves increased by 3.2 percent to Rs. 453.61 billion in mid-March 2013 from a level of Rs. 439.46 billion as at mid-July 2012, he said.
The overall BOP recorded a surplus of Rs. 11.78 billion during eight months of 2012/13 compared to a surplus of Rs. 81.09 billion during the same period of the previous year, the NRB governor said.
Dr Khatiwada said efforts have been made to take the monetary expansion in line with the economic growth rate and for the effectiveness of regulation.
Former NRB governor Dipendra Purush Dhakal, deputy governors, staffs and incumbent employees highlighted the contribution of banks to the development of financial sector.
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