KATHMANDU: Nepal’s remittance inflows rose sharply by 31.4 percent in the first four months of the current fiscal year 2025/26, reaching Rs 687.13 billion, according to the latest financial statistics released by Nepal Rastra Bank (NRB) on Monday.
In the same period last fiscal year, remittance inflows had increased by just 9.4 percent. NRB data shows that remittance inflows in Kartik alone stood at Rs 133.82 billion, up from Rs 114.31 billion recorded in the same month a year ago.
During the review period, a total of 145,973 Nepalis obtained final labor approval (institutional and individual–new) for foreign employment, while 127,837 received re-entry labor approvals. In the corresponding period of the previous year, these figures stood at 147,478 and 94,105 respectively.
Foreign exchange reserves exceed Rs 30 trillion
Nepal’s total foreign exchange reserves increased by 14.1 percent to reach Rs 3.055 trillion by mid-Kartik 2082, up from Rs 2.677 trillion llion at the end of Ashad 2082.
In US dollar terms, reserves rose by 10.3 percent to USD 21.52 billion by mid-Kartik, compared to USD 19.50 billion at the end of the previous fiscal year.
Of the total reserves, holdings with Nepal Rastra Bank increased by 12.8 percent to Rs 2.724 trillion, while reserves held by banks and financial institutions (excluding NRB) grew by 25.8 percent to Rs 330.85 billion during the period. Indian currency accounted for 21.9 percent of total foreign exchange reserves as of mid-Kartik.
Reserves sufficient to cover over 17 months of imports
Based on imports during the first four months of FY 2025/26, the existing foreign exchange reserves are sufficient to cover 20.8 months of merchandise imports and 17.4 months of merchandise and services imports, NRB said.
As of mid-Kartik, the ratios of foreign exchange reserves to GDP, total imports and broad money supply stood at 50.0 percent, 144.9 percent and 37.8 percent respectively, up from 43.8 percent, 128.1 percent and 34.1 percent recorded at the end of Ashad 2082.
Further improvement in current account and balance of payments
The current account remained in surplus by Rs 279.65 billion during the review period, compared to a surplus of Rs 147.78 billion in the same period last year. In US dollar terms, the current account surplus increased to USD 1.99 billion from USD 1.10 billion a year earlier.
Net capital transfers during the period stood at Rs 6.21 billion, up from Rs 2.47 billion last year. Meanwhile, foreign direct investment (equity only) inflows declined to Rs 2.49 billion from Rs 5.76 billion in the corresponding period of the previous year.
The balance of payments recorded a surplus of Rs 318.40 billion during the review period, compared to Rs 205.83 billion in the same period last fiscal year. In US dollar terms, the surplus widened to USD 2.26 billion from USD 1.53 billion previously.
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