Kathmandu, Feb 2: Nepal Rastra Bank, the central bank of Nepal, has said that the remittance inflows have increased 4.1 percent to Rs.763.08 billion in the past six months of the current fiscal year 2081/82 BS (2024/25) compared to an increase of 22.2 percent in the same period of the previous year.
In the US Dollar terms, remittance inflows increased 1.1 percent to 5.58 billion in the review period compared to an increase of 19.5
percent in the same period of the previous year.
Likewise, net secondary income (net transfer) reached Rs.832.76 billion in the review period compared to Rs.799.54 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 230,439 and taking approval for renew entry stands at 162,628. In the previous year, such numbers were 206,390 and 133,940 respectively.
Current Account and Balance of Payments
The current account remained at a surplus of Rs.148.17 billion in the review period compared to a surplus of Rs.162.56 billion in the same period of the previous year. In the US Dollar terms, the current account registered a surplus of 1.08 billion in the review period against a surplus of 1.22 billion in the same period last year.
In the review period, net capital transfer amounted to Rs.4.29 billion. In the same period of the previous year, such transfer amounted to Rs.3.11 billion. Similarly, in the review period, Rs.6.50 billion foreign direct investment (equity only) was received. In the same period of the previous year, such foreign direct investment (equity only) inflows amounted to Rs.4.54 billion.
Balance of Payments (BOP) remained at a surplus of Rs. 249.26 billion in the review period compared to a surplus of Rs. 273.52 billion in the same period of the previous year. In the US Dollar terms, the BOP remained at a surplus of 1.82 billion in the review period compared to a surplus of 2.06 billion in the same period of the previous year.
Foreign Exchange Reserves
Gross foreign exchange reserves increased 13.5 percent to Rs.2316.84 billion in mid-January 2025 from Rs.2041.10 billion in mid-July 2024. In the US dollar terms, the gross foreign exchange reserves increased 10.3 percent to 16.84 billion in mid-January 2025 from 15.27 billion in mid-July 2024.
Of the total foreign exchange reserves, the reserves held by NRB increased 12.1 percent to Rs.2072.34 billion in mid-January 2025 from Rs.1848.55 billion in mid- July 2024. Reserves held by banks and financial institutions (except NRB) increased 27.0 percent to Rs.244.50 billion in mid-January 2025 from Rs.192.55 billion in mid-July 2024.
The share of Indian currency in total reserves stood at 24.3 percent in mid-January 2025.
Foreign Exchange Adequacy Indicators
Based on the imports of six months of 2024/25, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 17.3 months, and merchandise and services imports of 14.4 months. The ratio of reserves-to-GDP, reserves-to-imports and reserves- to-M2 stood at 40.6 percent, 120.3 percent and 32.0 percent respectively in mid-January 2025.
Such ratios were 35.8 percent, 108.6 percent and 29.3 percent respectively in mid-July 2024.
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