Kathmandu, March 12: The Nepal Rastra Bank, central bank of Nepal, has stated that the current account remained at a surplus of Rs. 493.78 billion in seven months of the current fiscal year 2025/26.
According to the “Current Macroeconomic and Financial Situation of Nepal”, such surplus was Rs.184.14 billion in the same period of the previous 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.
Foreign Exchange Reserves
Gross foreign exchange reserves increased 23.3 percent to Rs.3302.66 billion in mid-February 2026 from Rs.2677.68 billion in mid-July 2025. In the US dollar terms, the gross foreign exchange reserves increased 16.7 percent 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 21.2 percent to Rs.2926.99 billion in midFebruary 2026 from Rs. 2414.64 billion in mid-July 2025.
Reserves held by banks and financial institutions (except NRB) increased 42.8 percent 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 percent in mid-February 2026.
Foreign Exchange Adequacy Indicators
Based on the imports of the seven months of 2025/26, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 21.3 months, and merchandise and services imports of 18.0 months.
The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 54.1 percent, 150.2 percent, and 39.7 percent respectively in mid-February 2026. Such ratios were 43.8 percent, 128.1 percent, and 34.1 percent respectively in mid-July 2025.
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