Remittance inflows rise to Rs. 1,261B in 7 months

By A Staff Reporter,Kathmandu, Mar. 13: Nepal recorded a significant surge in remittance inflows during the first seven months of fiscal year 2025/26, strengthening the country’s external sector.

According to the latest macroeconomic and financial report made public by Nepal Rastra Bank, remittance inflows increased by 39.8 per cent, reaching Rs. 1,261.01 billion during the review period. In the same period of the previous fiscal year, remittance had grown by only 7.5 per cent.

During the month of Magh (mid-January to mid-February) alone, Nepal received Rs. 198.08 billion in remittances, a notable rise compared to Rs. 137.50 billion recorded in the same month last year.

In the US dollar terms, remittance inflows increased by 33 per cent to 8.86 billion in the review period. Such inflow had increased by 5.5 per cent in the same period of the previous year.

Net secondary income (net transfer) reached Rs. 1,384.27 billion in the review period. Such income was Rs. 986.34 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 245,153 and taking approval for renew entry stands at 227,424. In the same period of the previous year, such numbers were 274,662 and 190,886 respectively.

Forex reserves reach Rs. 3,302 billion

Similarly, the foreign exchange reserves have increased significantly in the first seven months of the current fiscal year.

According to NRB, gross foreign exchange reserves rose by 23.3 per cent to Rs. 3,302.66 billion in mid-February 2026, compared to Rs. 2,677.68 billion recorded in mid-July 2025.

In the US dollar terms, the gross foreign exchange reserves increased by 16.7 per cent to 22.76 billion in mid-February 2026 from 19.50 billion in mid-July 2025.

Of the total foreign exchange reserves, the reserves held by NRB increased by 21.2 per cent to Rs. 2926.99 billion in mid-February 2026 from Rs. 2414.64 billion in mid-July 2025.

Reserves held by banks and financial institutions (except NRB) increased by 42.8 per cent to Rs. 375.67 billion in mid- February 2026 from Rs. 263.04 billion in mid-July 2025. The share of Indian currency in total reserves stood at 21.5 per cent in mid-February 2026.

Based on the country’s import levels during the first seven months of fiscal year 2025/26, the existing reserves are sufficient to cover 21.3 months of merchandise imports and 18 months of combined merchandise and services imports.

Current account surplus widens, BoP remains strong

According to NRB, the current account recorded a surplus of Rs. 493.78 billion during the review period, a substantial increase compared to the Rs. 184.14 billion surplus recorded in the same period of the previous fiscal year.

In the US dollar terms, the current account registered a surplus of 3.47 billion in the review period against a surplus of 1.37 billion in the same period of the previous year.

In the review period, net capital transfer amounted to Rs. 11.43 billion. In the same period of the previous year, such transfer amounted to Rs. 5.83 billion.

Similarly, in the review period, Rs. 10.22 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. 7.43 billion.

During the review period, Balance of Payments (BOP) remained at a surplus of Rs. 572.73 billion.

Such surplus was Rs. 284.41 billion in the previous year. In the US dollar terms, the BOP remained at a surplus of Rs. 4.03 billion in the review period compared to a surplus of Rs. 2.11 billion in the same period of the previous year.