NRB reports strong growth in remittance, current account surplus, and foreign exchange reserves
KATHMANDU, OCTOBER 15
Nepal Rastra Bank (NRB) has reported a 33.1 percent rise in remittance inflows, reaching Rs 352.08 billion in the first two months of the current fiscal year 2025/26.
This growth contrasts with a 15.8 percent increase during the same period last year, according to NRB's Current Macroeconomic and Financial Situation of Nepal report released on October 14.
During mid-August to mid-September alone, remittances totaled Rs 174.67 billion, up from Rs 127.99 billion a year earlier. In US dollar terms, inflows increased 27.6 percent to USD 2.52 billion.
The report also shows that net secondary income (net transfers) reached Rs 384.88 billion, compared to Rs 287.76 billion in the same period last year. The number of Nepali migrant workers obtaining first-time approvals for foreign employment stood at 90,198, while 45,884 received renewals - both higher than last year's figures.
The current account registered a surplus of Rs 130.69 billion (USD 934.7 million), up from Rs 54.41 billion (USD 405.6 million) a year ago. Similarly, the Balance of Payments (BOP) showed a surplus of Rs 153.68 billion, compared to Rs 101.77 billion in the previous year.
Gross foreign exchange reserves rose 7.6 percent to Rs 2,881.35 billion (USD 20.41 billion) as of mid-September, sufficient to cover prospective merchandise imports for 19.7 months or merchandise and services imports for 16 months. The NRB held Rs 2,582.38 billion of the reserves, while banks and financial institutions held Rs 298.97 billion.
The share of Indian currency in total reserves stood at 22.5 percent. The reserves-to-GDP, reserves-to-imports, and reserves-to-M2 ratios improved to 47.2 percent, 133.1 percent, and 36.6 percent, respectively, reflecting strengthened external sector stability.
