KATHMANDU: Nepal Rastra Bank has reported that remittance inflows surged to Rs 1,449.65 billion in the first eight months of the current fiscal year, marking a significant 37.7 percent increase compared to the same period last year.
In its latest report on the Current Macroeconomic and Financial Situation of Nepal based on data ending mid-March, the central bank stated that gross foreign exchange reserves rose by 27.5 percent to Rs 3,413.77 billion in mid-March 2026, up from Rs 2,677.68 billion in mid-July 2025. The reserves are sufficient to cover prospective merchandise and services imports for 18.5 months.
Of the total reserves, those held by the central bank increased by 25.7 percent to Rs 3,035.11 billion, while reserves held by banks and financial institutions rose sharply by 44 percent to Rs 378.66 billion. The share of Indian currency in total reserves stood at 21 percent.
Inflation remained relatively stable during the review period. Year-on-year consumer price inflation stood at 3.62 percent in the first eight months, slightly down from 3.75 percent a year ago. The average inflation rate for the eighth month stood at 2.13 percent, compared to 4.72 percent in the same period last year.
In the external sector, merchandise exports grew by 20.8 percent to Rs 191.11 billion, while imports increased by 12.5 percent to Rs 1,289.25 billion. As a result, the trade deficit widened by 11.2 percent to Rs 1,098.14 billion. However, the export-import ratio improved to 14.8 percent from 13.8 percent in the previous year.
Remittance inflows during the month of Falgun (mid-February to mid-March) alone stood at Rs 188.64 billion, up from Rs 151.19 billion in the same period last year.
The current account remained in strong surplus at Rs 552.85 billion during the review period, significantly higher than the Rs 197.03 billion surplus recorded in the corresponding period of the previous year.
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