Kathmandu, Feb 2: Nepal Rastra Bank (NRB), the central bank of Nepal, has said that the remittance inflows increased 39.1 percent to Rs. 1062.93 billion in the six months of current FY 2025/26 compared to an increase of 4.2 percent in the same period of the previous year.
According to “Current Macro-Economic and Financial Situation Report” published by NRB, during mid-December to mid-January (Poush month), remittance inflows stood at Rs. 192.62 billion. In the same period of the previous year, such inflows were Rs. 122.44 billion.
In the US Dollar terms, remittance inflows increased 32.3 percent to 7.50 billion in the review period. Such inflow had increased 2.7 percent in the same period of the previous year.
Net secondary income (net transfer) reached Rs.1168.02 billion in the review period. Such income was Rs.833.86 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 206,807 and taking approval for renewed entry stands at 194,733 in the review period. In the same period of the previous year, such numbers were 230,439 and 162,628, respectively.
Current Account and Balance of Payments
The current account remained at a surplus of Rs. 429.91 billion in the review period. Such surplus was Rs.165.67 billion in the same period of the previous year. In US Dollar terms, the current account registered a surplus of 3.03 billion in the review period, compared to a surplus of 1.23 billion in the same period of the previous year.
In the review period, net capital transfer amounted to Rs.10.76 billion. In the same period of the previous year, such a transfer amounted to Rs. 4.29 billion. Similarly, during the review period, Rs. 8.17 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. 6.48 billion.
Balance of Payments (BOP) remained at a surplus of Rs.501.24 billion in the review period. Such surplus was Rs.249.26 billion in the previous year. In US Dollar terms, the BOP remained in a surplus of Rs. 3.54 billion in the review period, compared to a surplus of Rs. 1.85 billion in the same period of the previous year.
Foreign Exchange Reserves
Gross foreign exchange reserves increased 21.1 percent to Rs.3242.45 billion in midJanuary 2026 from Rs.2677.68 billion in mid-July 2025. In US dollar terms, the gross foreign exchange reserves increased 15.2 percent to 22.47 billion in midJanuary 2026 from 19.50 billion in midJuly 2025.
Of the total foreign exchange reserves, the reserves held by NRB increased 19.4 percent to Rs.2884.08 billion in midJanuary 2026 from Rs. 2414.64 billion in mid-July 2025. Reserves held by banks and financial institutions (except NRB) increased 36.2 percent to Rs.358.37 billion in mid-January 2026 from Rs.263.04 billion in midJuly 2025. The share of Indian currency in total reserves stood at 22.3 percent in mid-January 2026.
Foreign Exchange Adequacy Indicators
Based on the imports of the six months of 2025/26, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 21.4 months, and merchandise and services imports of 18.1 months.
The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 53.1 percent, 150.7 percent, and 40.5 percent respectively in mid-January 2026. Such ratios were 43.8 percent, 128.1 percent, and 34.1 percent respectively in mid-July 2025.
Consumer Price Inflation (CPI)
The y-o-y consumer price inflation stood at 2.42 percent in mid-January 2026 compared to 5.41 percent a year ago. Food and beverage inflation decreased 0.09 percent whereas non-food and service inflation stood at 3.81 percent in the review month.
During the same period in the previous year, the price indices of these groups had increased 7.67 percent and 4.19 percent, respectively.
The average inflation stood at 1.70 percent in the sixth month of the current fiscal year compared to 4.97 percent a year ago.
Under the food and beverage category, y-o-y price index of fruit sub-category increased 5.20 percent, ghee & oil 4.96 percent, and non-alcoholic drinks 3.04 percent while y-o-y price index of pulses & legumes sub-category decreased 5.52 percent, spices 3.92 percent, and cereal grains & their products 3.70 percent.
Under the non-food and services category, y-o-y price index of miscellaneous goods & services sub-category increased 21.75 percent, education 7.56 percent, clothes and footwear 5.29 percent, tobacco products 4.15 percent, and alcoholic drinks 3.85 percent while y-o-y price index of insurance & financial services sub-category decreased 0.03 percent.
During the review month, y-o-y price index in rural areas increased 1.99 percent, while in urban areas, it rose 2.57 percent.
Full Text
