KATHMANDU: Nepal’s external economic indicators remain stable, according to the latest Nepal Rastra Bank (NRB) report titled Current Macroeconomic and Financial Situation of Nepal, published on Monday.
This report is based on seven months data ending mid-February, 2024/25.
As the report states, the year–over–year consumer price inflation remained at 4.16 percent in mid-February compared to 5.01 percent a year ago.
Food and beverage inflation stood at 4.95 percent whereas non-food and service inflation stood at 3.74 percent in the review month.
Regionally, annual point-to-point consumer inflation was recorded at 4.73 percent in rural areas and 3.96 percent in urban areas. Province-wise, Koshi had the highest inflation at 6.15 percent, followed by Sudurpashchim at 4.71 percent, while Bagmati had the lowest at 3.35 percent.
Similarly, wholesale inflation stood at 3.47 percent in mid-February, up from 2.82 percent in the same month last year.
Remittance inflows increase by 7.3 percent
During the review period, remittance inflows increased by 7.3 percent to reach Rs 900.58 billion, compared to an
increase of 18.8 percent in the same period of the previous year. In US dollars, remittance inflows rose by 5.3 perent to $6.65 billion. The number of new labor approvals for foreign employment stood at 274,622, while re-approvals were at 190,886.
Foreign exchange reserves rise by 16.1 percent
Total foreign exchange reserves increased by 16.1 percent to Rs.2369.08 billion in mid-February
2025 from Rs.2041.10 billion in mid-July 2024. In US dollars, reserves rose bypercent to
17.05 billion in mid-February 2025 from 15.27 billion in mid-July 2024. Indian currency accounted for 22% of the total reserves.
According to Nepal Rastra Bank, the current reserves can support 17.2 months of merchandise imports and 14.4 months of total imports, including goods and services.
Current account surplus and government cash balance
The current account recorded a surplus of Rs 166.8 billion, up from Rs 162.52 billion in the same period last year.
Meanwhile, the government’s cash balance in Nepal Rastra Bank stood at Rs 350.07 billion at the end of mid-February, up from Rs 83.99 billion in mid-July, 2024.
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