Rs. 1,191 billion remittance received in nine months

Kathmandu, May 12: Nepal has received Rs. 1,191.31 billion in remittances in the first nine months of the current fiscal year 2024/25.

According to the Current Macroeconomic and Financial Situation Report made public by Nepal Rastra Bank on Sunday, remittances worth Rs. 1,191.31 billion have been received during the first nine months from mid-July 2024 to mid-April 2025 of the current fiscal year.

The remittance inflows increased by 10 per cent during the review period of the current fiscal year as compared to same period last fiscal year. The growth rate of remittance inflows during the review period shrank. There was an increase of 17.2 per cent in the remittances flows in the corresponding period of the previous year.     

The country received remittances of around of Rs. 140 billion in a single month of Chaitra (from mid-March to mid-April). About Rs. 1,051 billion had been received by mid-March of the current fiscal year. According to the report, in the US dollar terms, remittance inflows increased by 7.3 per cent to 8.74 billion in the review period compared to an increase of 15.2 per cent in the same period of the previous year.

Net secondary income (net transfer) reached Rs. 1,301.94 billion in the review period compared to Rs. 1,174.54 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 stood at 358,222 and taking approval for renew entry stood at 249,652. In the previous year, such numbers were 327,842 and 211,226 respectively.

Foreign exchange reserves reach Rs. 2,426 billion

With continuous improvement in remittance inflows, the external sector of the country has seen a further improvement. 

According to NRB, gross foreign exchange reserves increased by 18.9 per cent to Rs. 2,426.84 billion in mid-April 2025 from Rs. 2,041.10 billion in mid-July 2024. 

In the US dollar terms, the gross foreign exchange reserves increased 15.4 per cent to 17.63 billion in mid-April 2025 from 15.27 billion in mid-July 2024.

Of the total foreign exchange reserves, the reserves held by NRB increased by 15.6 per cent to Rs. 2,136.46 billion in mid-April 2025 from Rs. 1,848.55 billion in mid-July 2024. 

Reserves held by banks and financial institutions (except NRB) increased by 50.8 per cent to Rs. 290.38 billion in mid-April 2025 from Rs. 192.55 billion in mid-July 2024. 

The share of Indian currency in total reserves stood at 20.4 per cent in mid-April 2025.

Based on the imports of nine months of 2024/25, the foreign exchange reserves of the banking sector are sufficient to cover the prospective merchandise imports of 17.1 months, and merchandise and services imports of 14.2 months. 

BoP remains in surplus

Meanwhile, the balance of Payments (BOP) remained at a surplus of Rs. 346.23 billion in the review period compared to a surplus of Rs. 365.16 billion in the same period of the previous year. 

In the US dollar terms, the BOP remained at a surplus of 2.55 billion in the review period compared to a surplus of 2.75 billion in the same period of the previous year.

Likewise, the current account remained at a surplus of Rs. 210.22 billion in the review period compared to a surplus of Rs. 179.83 billion in the same period of the previous year. 

In the US dollar terms, the current account registered a surplus of 1.55 billion in the review period against a surplus of 1.35 billion in the same period last year.

In the review period, net capital transfer amounted to Rs. 7.71 billion. 

In the same period of the previous year, such transfer amounted to Rs.4.78 billion. 

Similarly, in the review period, Rs. 8.96 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. 6.49 billion.