Kathmandu: The current account maintained a surplus of Rs.166.80 billion in the review period compared to a surplus of Rs.162.52 billion in the same period of the previous year, Nepal Rastra Bank (NRB) stated in its ‘Current Macroeconomic and Financial Situation of Nepal (Based on Seven Months Data Ending Mid-February, 2024/25) Report’. In US Dollar terms, the current account registered a surplus of 1.24 billion in the review period against a surplus of 1.22 billion in the same period last year.
According to National News Agency Nepal, net capital transfer amounted to Rs.5.83 billion in the review period, compared to Rs.3.80 billion in the same period of the previous year. Foreign direct investment (equity only) also saw an increase, with Rs.7.45 billion received, compared to Rs.5.19 billion in the previous year.
The Balance of Payments (BOP) recorded a surplus of Rs.284.41 billion in the review period, a slight decrease from the Rs.297.72 billion surplus in the same period of the previous year. In US Dollar terms, the BOP was at a surplus of 2.11 billion compared to 2.24 billion the previous year.
Gross foreign exchange reserves saw a notable increase of 16.1 percent, reaching Rs.2369.08 billion in mid-February 2025 from Rs.2041.10 billion in mid-July 2024. In US Dollar terms, reserves rose 11.7 percent to 17.05 billion from 15.27 billion during the same period. Reserves held by NRB increased by 13.9 percent, while those held by banks and financial institutions (excluding NRB) rose by 37.1 percent. The Indian currency’s share in total reserves was 22.0 percent in mid-February 2025.
Based on the imports of the seven months of 2024/25, the foreign exchange reserves of the banking sector are adequate to cover prospective merchandise imports for 17.2 months and merchandise and services imports for 14.4 months. The ratios of reserves-to-GDP, reserves-to-imports, and reserves-to-M2 improved to 41.5 percent, 120.3 percent, and 32.5 percent respectively, compared to 35.8 percent, 108.6 percent, and 29.3 percent in mid-July 2024.