Remittance inflows Rs. 177 billion in first month of current FY

By A Staff Reporter,Kathmandu, Sept. 17: Nepal has received remittance above Rs. 177 billion in the first month of the current fiscal year 2025/26.     

According to the current macroeconomic and financial situation report published by Nepal Rastra Bank, the remittance inflow increased by 29.9 per cent to Rs. 177.41 billion in the first month (from mid-July to mid-August 2025) of the current fiscal year. 

Remittance inflow had increased by 17.7 per cent to Rs. 136.60 billion in the same period of the previous year.

In the US dollar terms, remittance inflows increased by 25 per cent to 1.27 billion in the review period. Such inflow had increased by 15.8 per cent in the same period of the previous year.

Net secondary income (net transfer) reached Rs. 193.85 billion in the review period, according to the NRB.

Such income was Rs. 148.08 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 44,466 and taking approval for renew entry stands at 23,644. In the same period of the previous year, such numbers were 36,928 and 22,647 respectively.

There has been a significant increase in remittance inflows into the country over the past two years. Remittance inflows increased by 19.2 per cent to Rs. 1,723.27 billion in last fiscal year. The remittance inflow received last year is the highest ever.

Meanwhile, as remittances increase, the country's foreign exchange reserves continue to set records.

According to the NRB, gross foreign exchange reserves increased by 4.8 per cent to Rs. 2,806.04 billion in mid-August 2025 from Rs.2677.68 billion in mid July 2025. 

The present foreign currency reserves are at a historic high in the country.

In the US dollar terms, the gross foreign exchange reserves increased by 2.7 per cent to 20.03 billion in mid-August 2025 from 19.50 billion in mid-July 2025.

Of the total foreign exchange reserves, the reserves held by NRB increased by 4 per cent to Rs. 2511.45 billion in mid-August 2025 from Rs. 2414.64 billion in mid-July 2025.

Reserves held by banks and financial institutions (except NRB) increased by 12 per cent to Rs. 294.58 billion in mid-August 2025 from Rs. 263.04 billion in mid-July 2025. 

The share of Indian currency in total reserves stood at 23.4 per cent in mid-August 2025.

Based on the imports of the first month of 2025/26, the foreign exchange reserves of the banking sector are sufficient to cover the prospective merchandise imports of 20.4 months, and merchandise and services imports of 16.6 months. 

The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 45.9 per cent, 138.3 per cent, and 36 per cent respectively in mid-August 2025. 

Such ratios were 43.8 per cent, 128.1 per cent, and 34.1 per cent respectively in mid-July 2025.

Likewise, the current account remained at a surplus of Rs. 78.14 billion in the review period. 

Such surplus was Rs. 33.08 billion in the same period of the previous year. 

In the US dollar terms, the current account registered a surplus of 561 million in the review period against a surplus of 246.8 million in the same period of the previous year, said the report.

In the review period, net capital transfer amounted to Rs.1.04 billion. 

In the same period of the previous year, such transfer amounted to Rs. 223.2 million. 

Similarly, in the review period, Rs. 691.5 million foreign direct investment (equity only) was received. In the same period of the previous year, foreign direct investment inflow (equity only) amounted to Rs. 799.8 million.

The Balance of Payments (BOP) remained at a surplus of Rs. 89.30 billion in the first month of the current fiscal year.

In the US dollar terms, the BOP remained at a surplus of 641.2 million in the review period compared to a surplus of 305.1 million in the same period of the previous year.