Registering over US dollars 400 million level for the second consecutive month this year, workers’ remittances recorded at US dollars 407 million during February 2023, in comparison to US dollars 205 million in February 2022.
Meanwhile, total departures for foreign employment were recorded at 23,974 during February 2023. Total departures of foreign employment comprised unskilled (7,662), domestic aid (6,939) and skilled (6,582) categories.
Meanwhile, earnings from tourism in February 2023 are estimated at US dollars 170 million in comparison to US dollars 162 million in January and US dollars 169 million last year.
The exchange rate continued to remain stable through February 2023, before notably appreciating during March 2023 with the removal of the guidance band and mandatory sales requirement amidst improved market sentiments.
Up to March 31, 2023, the rupee recorded an appreciation of 10.9% against the US dollar, compared to the appreciation of 0.4% recorded by the end of February 2023.
Gross official reserves stood at US dollars 2.2 billion as of the end of February 2023.
The deficit in the merchandise trade account narrowed significantly to US dollars 39 million in February 2023, from US dollars 780 million in February 2022, mainly reflecting the impact of significant moderation of import expenditure due to subdued aggregate demand conditions.
The cumulative deficit in the trade account during January-February 2023 was US dollars 449 million, a sizable decline from US dollars 1,636 million recorded over the same period in 2022.
Despite recording a marginal growth compared to January 2023, earnings from merchandise exports declined by 10.2 per cent in February 2023, year-on-year, to US dollars 982 million. Exports earnings recorded below the US dollar 1 billion level for the second consecutive month. While the decline in earnings was observed across all main categories, industrial exports mainly contributed to the overall contraction. meanwhile, Earnings from the exports of industrial goods declined in February 2023, compared to February 2022, with a substantial share of the decline being contributed by garments. Reduced demand from major markets for garments due to unfavourable economic conditions globally mainly contributed to this outcome. Earnings from rubber products continued to decline due to the lower exports of household rubber gloves.
Earnings from the export of agricultural goods marginally declined in February 2023, compared to a year ago, since the increase in earnings from spices and tea was offset by the decline in earnings from coconut-related products. Meanwhile, expenditure on all major merchandise imports was almost halved in February 2023 at US dollars 1,021 million, compared to February 2022, recording the lowest imports since May 2020.
Expenditure on the importation of consumer goods declined in February 2023, compared to February 2022.