Kathmandu, May 12: Nepal Rastra Bank, the central bank of Nepal, has stated that the country’s current account and balance of payments (BoP) remained in surplus during the first nine months of the current fiscal year 2025/26.
According to the bank’s “Current Macroeconomic and Financial Situation (Based on nine months data of 2025/26)”, the current account remained at a surplus of Rs. 618.68 billion in the review period. Such surplus was Rs.222.67 billion in the same period of the previous year. 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, during the review period, Rs. 14.55 billion in foreign direct investment (equity only) was received. In the same period of the previous year, foreign direct investment inflows (equity only) amounted to Rs. 8.94 billion.
Balance of Payments (BOP) remained at a surplus of Rs.731.16 billion in the review period. Such surplus was Rs.346.23 billion 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.
Foreign Exchange Reserves
Gross foreign exchange reserves increased 30.5 percent to Rs.3494.73 billion in mid-April 2026 from Rs.2677.68 billion in mid-July 2025. In US dollar terms, the gross foreign exchange reserves increased 20.8 percent 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 27.7 percent 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 56.8 percent 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 percent in mid-April 2026.
Foreign Exchange Adequacy Indicators
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 percent, 153.1 percent, and 41.2 percent respectively in mid-April 2026. Such ratios were 43.8 percent, 128.1 percent, and 34.1 percent respectively in mid-July 2025. #Nepal
