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The gold is being traded at Rs 110, 800 per tola in the domestic market on Thursday. According to the Federation of Nepal Gold and Silver Dealers’ Association, tejabi gold is being traded at Rs 110, 250 per tola. Similarly, the silver is being traded at Rs 1,450 per tola today.

The improvement in the country's external sector has continued in the eight months of the current fiscal year. The latest macroeconomic report published by the Nepal Rastra Bank (NRB) on Tuesday shows noticeable improvements in the country's forex reserves, balance of payment (BOP), tourism income, and remittance inflow. According to the report, Nepal's BOP is at a surplus of Rs 148.10 billion in the eight months of FY 2022/23 compared to a deficit of Rs 258.64 billion in the same period of FY 2021/22. The BoP had turned surplus in mid-October 2022 after a gap of 14 months. In US Dollar terms, the BOP is at a surplus of 1.12 billion in this fiscal year compared to a deficit of 2.17 billion in the same period of the last fiscal year. The country's forex reserves increased by 15.2 percent in the first eight months of the current fiscal year. Nepal's forex reserves stood at Rs 1401.21 billion in mid-March 2023 (Falgun) from Rs 1215.80 billion in mid-July 2022. In US dollar terms, the gross foreign exchange reserves increased by 12.1 percent to Rs 10.69 billion in mid-March 2023 from Rs 9.54 billion in mid-July 2022. The central bank said that the foreign exchange reserves of the banking sector are sufficient to cover merchandise imports for 10.8 months, and merchandise and services imports for 9.4 months. According to the report, remittance inflows have increased by 25.3 percent to Rs 794.32 billion in the review period. The inflow of remittances had decreased by 1.3 percent in the same period of the last fiscal year. In US Dollar terms, remittance inflows increased by 14.8 percent to 6.09 billion in the review period against a decrease of 2.6 percent in the same period of the previous year. Meanwhile. current account deficit (CAD) has also narrowed significantly in the last eight months. As per the report, CAD has now come down to Rs 44.31 billion which was Rs 460.72 billion in the same period of the previous year. NRB Executive Director Prakash Shrestha said that the improvement in the external sector is due to the slowdown of credit disbursement. "The economy has plunged into trouble mainly due to a lack of credit investment in the productive sector," said Shrestha at a press meet organized by the central bank on Tuesday. "If the loans to be invested in the future do not help to increase domestic production, the economy will face problems again." According to him, the country's economy has faced problems when loans were invested in the real estate and stock markets in the past. "If the credit flow to these sectors increases in the future, this cycle will get repeated." Inflation slows down slightly The NRB report shows consumer inflation has declined slightly in Falgun (mid-February to mid-March) compared to Magh (mid-January to mid-February). Consumer inflation stood at 7.44 percent in mid-March compared to 7.88 percent in mid-February. Food and beverage inflation stood at 5.64 percent whereas non-food and service inflation rose to 8.87 percent. Under the food and beverage category, the price of cereal grains and their products sub-category increased by 14.35 percent, the restaurant and hotel sub-category increased by 14.09 percent, spices by 10.88 percent, tobacco products by 10.83 percent, and alcoholic drinks by 8.78 percent. Under the non-food and services category, the price of transportation sub-category increased by 13.23 percent, health by 10.39 percent, housing and utilities by 9.72 percent, recreation and culture by 8.81 percent, and furnishing and household equipment by 8.79 percent. According to NRB, the rate of inflation in the Kathmandu valley, Terai, hills, and mountainous regions surged to 7.95 percent, 7.50 percent, 6.67 percent, and 8.07 percent, respectively.

To calm down the anger of a desperate business community that is bearing the brunt of the economic downturn, the government has said it will take necessary measures to take the derailed economy back on track. On Tuesday, Prime Minister Pushpa Kamal Dahal and Finance Minister Dr. Prakash Saran Mahat have assured the private sector that the government is working on lowering interest rates and reinvigorating the investment climate in the country. Addressing the 57th annual general meeting of the Federation of Nepalese Chambers of Commerce and Industries (FNNCI) on Tuesday, Prime Minister Dahal said the government is committed to resolving the problems of the economy and intensive discussions have started between the government and Nepal Rastra Bank. "All the government agencies are working together and are on the same page for reducing the borrowing rates, making the market vibrant by increasing the capital expenditure, and other policy interventions," said Dahal. With businesspersons across the country gathering in Kathmandu for FNCCI AGM and to elect a new leadership, Prime Minister Dahal said the government is well aware of the private sector's expectations. Stating that the economy is moving towards recovery but not completely out of the crisis, Dahal said collaboration and cooperation between the government and the private sector are indispensable for economic recovery. Addressing the program, Finance Minister Mahat said that time has come for the review of the measures in the monetary policy. According to Mahat, the policy to restrict imports created pressure on revenue and the surge in the interest rates worsened the investment environment. "As sectors are in recession, the central bank should now take a policy shift. "We are in internal discussions to reduce the interest rate of deposits and loans, and the spread rate," said Mahat. Amid increasing discontent in the private sector, the government, of late, is trying to take them into confidence. On Monday, Prime Minister Dahal along with senior government officials sat down with representatives of banks and financial institutions. The government has hinted that it would lift restrictions on land plotting again to reenergize the real estate sector. The real estate business has come to a standstill across the country with the government's decision to classify land for different purposes. The government implemented land use regulations in June 2022. In the regulation, the local bodies have to classify the land into 10 types. While most of the local bodies are yet to classify the land, both Prime Minister and Finance Minister have said that they would facilitate the realty business. FNCCI President Shekhar Golchha said that the country's development is not possible without the private sector. Stating that the federation is on a mission to save the economy, Golchha said, "The economy is in trouble due to the mistakes made by all parties in the past. Now, everyone has to work together for a solution." Chandra Prasad Dhakal, Senior Vice President of FNCCI said normalcy would return to the economy within three months if the government and the central bank facilitate the private sector. Dhakal called for broader consultations amongst the stakeholders to resolve the current crisis.

The price of gold has increased by Rs 1, 000 per tola in the domestic market on Wednesday. According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 110, 800 per tola today. The gold was traded at Rs 109, 800 per tola on Tuesday. Meanwhile, tejabi gold is being traded at Rs 110, 250 per tola. Similarly, the silver is being traded at Rs 1,450 per tola today.