Kathmandu: Remittance inflows increased 33.1 percent to Rs.352.08 billion in the two months of 2025/26 compared to an increase of 15.8 percent in the same period of the previous year. This is stated in the report – Current Macroeconomic and Financial Situation of Nepal – published by Nepal Rastra Bank (NRB) on October 14. The report is based on two-month data ending Mid-September of Fiscal Year 2025/26.
According to National News Agency Nepal, during mid-August to mid-September (Bhadau month), remittance inflows stood at Rs. 174.67 billion. In the same period of the previous year, such inflows were Rs. 127.99 billion. In US Dollar terms, remittance inflows increased 27.6 percent to 2.52 billion in the review period. Such inflow had increased 14.2 percent in the same period of the previous year.
The NRB report highlighted that net secondary income (net transfer) reached Rs.384.88 billion in the review period, compared to Rs.287.76 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 90,198 and taking approval for renew entry stands at 45,884. In the same period of the previous year, such numbers were 76,485 and 40,583 respectively.
The current account remained at a surplus of Rs. 130.69 billion in the review period, compared to a surplus of Rs. 54.41 billion in the same period of the previous year. In US Dollar terms, the current account registered a surplus of 934.7 million in the review period against a surplus of 405.6 million in the same period of the previous year. Net capital transfer amounted to Rs.2.20 billion, while foreign direct investment (equity only) was Rs.1.27 billion, down from Rs.2.71 billion in the same period of the previous year.
The Balance of Payments (BOP) remained at a surplus of Rs.153.68 billion in the review period, compared to Rs.101.77 billion in the previous year. In US Dollar terms, the BOP remained at a surplus of 1.10 billion in the review period compared to a surplus of 758.4 million in the same period of the previous year.
Gross foreign exchange reserves increased 7.6 percent to Rs.2881.35 billion in mid-September 2025 from Rs. 2677.68 billion in mid-July 2025. In US dollar terms, the gross foreign exchange reserves increased 4.7 percent to 20.41 billion in mid-September 2025 from 19.50 billion in mid-July 2025. Of the total foreign exchange reserves, the reserves held by NRB increased 6.9 percent to Rs.2582.38 billion, while reserves held by banks and financial institutions (except NRB) increased 13.7 percent to Rs.298.97 billion. The share of Indian currency in total reserves stood at 22.5 percent.
Based on the imports of the two months of 2025/26, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 19.7 months, and merchandise and services imports of 16 months. The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 47.2 percent, 133.1 percent, and 36.6 percent respectively in mid-September 2025, compared to 43.8 percent, 128.1 percent, and 34.1 percent respectively in mid-July 2025.