Remittance inflow into the country reached Rs 1,051.77 billion as of mid-March in the current fiscal year, according to the latest report of Nepal Rastra Bank (NRB).
The Current Macroeconomic and Financial Situation Report based on eight months of data, published by the central bank on Wednesday, states that remittance inflows rose by 9.4 percent year-on-year as of mid-March. In comparison, the growth rate was 18.3 percent during the same period of the previous fiscal year.
In terms of US dollar, remittance inflows increased 6.9 percent to 7.74 billion in the review period compared to an increase of 16.1 percent in the same period of the previous year.
As a result, gross foreign exchange reserves increased 18.0 percent to Rs 2409.25 billion in mid-March 2025 from Rs 2041.10 billion in mid-July 2024, added the report.
Of the total foreign exchange reserves, the reserves held by NRB increased 15.2 percent to Rs 2130.31 billion in mid-March 2025 from Rs 1848.55 billion in mid-July 2024.
Reserves held by banks and financial institutions (except NRB) increased 44.9 percent to Rs 278.95 billion in mid-March 2025 from Rs 192.55 billion in mid-July 2024. The share of Indian currency in total reserves stood at 21.7 percent during the review period.
According to the NRB report, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 17.2 months, and merchandise and services imports of 14.3 months.
The report added that the country’s current account remained at a surplus of Rs 180.08 billion in the review period compared to a surplus of Rs 167.45 billion in the corresponding period of the previous year.
In the review period, net capital transfer amounted to Rs 6.41 billion. In the same period of the previous year, such transfers amounted to Rs 3.89 billion.
According to the central bank, Balance of Payments (BOP) remained at a surplus of Rs 310.37 billion in the review period compared to a surplus of Rs 327.55 billion in the same period of the previous year.
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