KATHMANDU, MAY 26
Nepal's current account surplus surged to Rs 210.22 billion in the first nine months of the fiscal year 2024/25, marking a significant improvement from Rs 179.83 billion during the same period last year, according to the Nepal Rastra Bank's latest Monetary Policy Review.
The Balance of Payments (BoP) also remained in surplus, though slightly down at Rs 346.23 billion, compared to Rs 365.16 billion in the corresponding period last year. In US dollars, the BoP surplus stood at $2.55 billion, compared to $2.75 billion previously.
Net capital transfer during the review period reached Rs 7.71 billion, up from Rs 4.78 billion. Foreign Direct Investment (FDI) inflow (equity only) amounted to Rs 8.96 billion, up from Rs 6.49 billion in the same period last fiscal year.
Foreign Exchange Reserves Surge Nearly 19%
Nepal's gross foreign exchange reserves rose 18.9% to Rs 2,426.84 billion as of mid-April 2025 from Rs 2,041.10 billion in mid-July 2024. In dollar terms, reserves rose 15.4% to $17.63 billion from $15.27 billion.
Reserves held by NRB climbed 15.6% to Rs 2,136.46 billion, while those held by banks and financial institutions rose 50.8% to Rs 290.38 billion. Indian currency accounted for 20.4% of the total reserves.
Reserve Adequacy Indicators
- Based on nine-month import data, Nepal's reserves can cover:
- 17.1 months of prospective merchandise imports, and
- 14.2 months of both merchandise and services imports.
The reserve adequacy ratios stood at:
- Reserves-to-GDP: 39.7% (up from 35.8%)
- Reserves-to-imports: 118.7% (up from 108.6%)
- Reserves-to-M2: 32.8% (up from 29.3%)
