Remittance inflows increased 33.1 percent to Rs.352.08 billion in the two months of 2025/26 compared to an increase of 15.8 percent in the same period of the previous year.
This is stated in the report - Current Macroeconomic and Financial Situation of Nepal - published by Nepal Rastra Bank (NRB) on October 14. The report is based on two-month data ending mid-September of Fiscal Year 2025/26.
During mid-August to mid-September (Bhadau month), remittance inflows stood at Rs. 174.67 billion. In the same period of the previous year, such inflows were Rs. 127.99 billion.
In US Dollar terms, remittance inflows increased 27.6 percent to 2.52 billion in the review period. Such inflow had increased 14.2 percent in the same period of the previous year.
According to NRB, net secondary income (net transfer) reached Rs.384.88 billion in the review period. Such income was Rs.287.76 billion in the same period of the previous year.
The number of Nepali workers, both institutional and individual, taking first-time approval for foreign employment stands at 90,198 and taking approval for renewed entry stands at 45,884. In the same period of the previous year, such numbers were 76,485 and 40,583 respectively.
Current account and balance of payments
The current account remained at a surplus of Rs. 130.69 billion in the review period. Such surplus was Rs. 54.41 billion in the same period of the previous year. In the US Dollar terms, the current account registered a surplus of 934.7 million in the review period against a surplus of 405.6 million in the same period of the previous year.
In the review period, net capital transfer amounted to Rs.2.20 billion. In the same period of the previous year, such transfer amounted to Rs.1.20 billion. Similarly, in the review period, Rs.1.27 billion foreign direct investment (equity only) was received.
In the same period of the previous year, foreign direct investment inflow (equity only) amounted to Rs.2.71 billion.
Balance of Payments (BOP) remained at a surplus of Rs.153.68 billion in the review period. Such surplus was Rs.101.77 billion in the previous year. In US Dollar terms, the BOP remained at a surplus of 1.10 billion in the review period compared to a surplus of 758.4 million in the same period of the previous year.
Foreign exchange reserves
Gross foreign exchange reserves increased by 7.6 percent to Rs.2881.35 billion in mid-September 2025 from Rs. 2677.68 billion in mid-July 2025.
In the US dollar terms, the gross foreign exchange reserves increased 4.7 percent to 20.41 billion in mid-September 2025 from 19.50 billion in mid-July 2025.
Of the total foreign exchange reserves, the reserves held by NRB increased by 6.9 percent to Rs.2582.38 billion in mid-September 2025 from Rs. 2414.64 billion in mid-July 2025.
Reserves held by banks and financial institutions (except NRB) increased 13.7 percent to Rs.298.97 billion in mid-September 2025 from Rs.263.04 billion in mid-July 2025. The share of Indian currency in total reserves stood at 22.5 percent in mid-September 2025.
Foreign Exchange Adequacy Indicators
Based on the imports of the two months of 2025/26, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 19.7 months, and merchandise and services imports of 16 months.
The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 47.2 percent, 133.1 percent, and 36.6 percent respectively in mid-September 2025. Such ratios were 43.8 percent, 128.1 percent, and 34.1 percent respectively in mid-July 2025. (RSS)
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