Remittance inflows surge by 39%

By A Staff Reporter,Kathmandu, May 13: Nepal’s economy received a major boost from soaring remittance inflows and rising foreign exchange reserves during the first nine months of current fiscal year 2025/26, according to the latest macroeconomic indicators.

The current macroeconomic situation report made public by the Nepal Rastra Bank (NRB) on Monday, remittance inflows increased by 39.1 per cent to Rs.1,659.41 billion during the review period, compared to a 10.2 per cent rise recorded in the same period last fiscal year.

In the month of Chaitra alone (mid-March to mid-April), the country received Rs. 209.75 billion in remittances, significantly higher than Rs. 139.54 billion recorded in the corresponding month last year.

In the US dollar terms, remittance inflows increased by 31.9 per cent to 11.55 billion in the review period. 

Such inflow had increased by 7.5 per cent in the same period of the previous year. 

Driven largely by strong remittance earnings, net secondary income (net transfer) reached Rs. 1,820.42 billion, up from Rs. 1,303.12 billion in the previous year.

The number of Nepali workers obtaining first-time approval for foreign employment stood at 294,186 during the review period, while 293,259 workers received approvals for renewed entry. 

In the same period of the previous year, such numbers were 358,222 and 249,652 respectively. 

Foreign currency reserves near Rs. 3,500 billion

Meanwhile, gross foreign exchange reserves surged by 30.5 per cent to Rs. 3,494.73 billion in mid-April 2026 from Rs. 2,677.68 billion in mid-July 2025. 

In US dollar terms, the gross foreign exchange reserves increased by 20.8 per cent to 23.55 billion in mid-April 2026 from 19.50 billion in mid-July 2025. 

Of the total foreign exchange reserves, the reserves held by NRB increased by 27.7 per cent to Rs. 3082.41 billion in mid-April 2026 from Rs. 2414.64 billion in mid-July 2025. 

Reserves held by banks and financial institutions (except NRB) increased by 56.8 per cent to Rs. 412.32 billion in mid-April 2026 from Rs. 263.04 billion in mid-July 2025. 

The share of Indian currency in total reserves stood at 20.4 per cent in mid-April 2026, said the NRB. 

Based on the imports of the nine months of 2025/26, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 21.8 months, and merchandise and services imports of 18.4 months. 

The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 57.2 per cent, 153.1 per cent, and 41.2 per cent respectively in mid-April 2026. 

BoP, current account surpluses surge

Similarly, the country’s overall Balance of Payments (BoP) remained strongly positive, registering a surplus of Rs. 731.16 billion during the review period, more than double the Rs. 346.23 billion surplus recorded in the previous year.

In US dollar terms, the BOP remained in a surplus of Rs. 5.10 billion in the review period, compared to a surplus of Rs. 2.55 billion in the same period of the previous year. 

Likewise, the current account posted a surplus of Rs. 618.68 billion during the review period, sharply higher than the surplus of Rs. 222.67 billion recorded a year ago.

In US dollar terms, the current account registered a surplus of 4.32 billion in the review period, compared to a surplus of 1.64 billion in the same period of the previous year. 

In the review period, net capital transfer amounted to Rs. 14.50 billion. In the same period of the previous year, such a transfer amounted to Rs. 7.71 billion. 

Similarly, Rs. 14.55 billion in foreign direct investment (equity only) was received during the review period.