KATHMANDU: Nepal’s remittance inflow increased by 4.1%, reaching Rs 763.08 billion, according to Nepal Rastra Bank in the first six months of the current fiscal year. In the same period last year, remittance inflow had surged by 22.2%.
Remittance inflows in US dollars grew by 1.1% to USD 5.58 billion, compared to a 19.5% increase in the previous year.
Similarly, Nepal’s total foreign exchange reserves, which stood at Rs 2.04 trillion at the end of the last fiscal year, increased by 13.5% to Rs 2.31 trillion by mid-January 2025. In US dollars, the reserves grew by 10.3%, reaching USD 16.84 billion.
Of the total reserves, Rs 2.07 trillion is held by Nepal Rastra Bank, marking a 12.1% rise from the Rs 1.85 trillion recorded in mid-July 2024. Meanwhile, foreign exchange reserves held by banks and financial institutions (excluding NRB) increased by 27% to Rs 244.50 billion.
Indian currency accounts for 24.3% of the total foreign exchange reserves. Based on six months of imports, Nepal’s banking sector has sufficient foreign exchange reserves to cover 17.3 months of goods imports and 14.4 months of goods and services imports.
As of mid-January 2025, foreign exchange reserves account for 40.6% of GDP, 120.3% of total imports, and 32% of broad money supply, compared to 35.8%, 108.6%, and 29.3%, respectively, in mid-July 2024.
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