Kathmandu, July 13: Nepal’s remittance inflows increased by 38.2 percent to Rs. 2120 billion during the first eleven months of fiscal year 2025/26, compared to a 15.6 percent increase recorded during the same period of the previous fiscal year.
According to the latest data released by Nepal Rastra Bank (NRB) based on the data of 11 months of the current fiscal year 2025/26, remittance inflows during the one-month period from mid-May to mid-June (Jestha) amounted to Rs. 203.89 billion, up from Rs. 176.32 billion during the corresponding month last year.
In US dollar terms, remittance inflows reached USD 14.59 billion, representing a 29.6 percent increase during the review period. In the same period of the previous fiscal year, remittance inflows had grown by 12.8 percent.
Meanwhile, net secondary income (net transfers) increased to Rs. 2.321 trillion, compared to Rs. 1.670 trillion during the same period a year earlier. The latest figures also show continued demand for foreign employment among Nepali workers. During the review period, 367,211 workers received first-time labour approvals for foreign employment, while 355,735 obtained renewed labour approvals to return overseas for work.
During the corresponding period of the previous fiscal year, 452,324 workers had received first-time approvals, while 308,067 had obtained renewed labour approvals.
Current Account and Balance of Payments
Nepal’s external sector remained strong during the first eleven months of fiscal year 2025/26, with substantial improvements in the current account, foreign direct investment (FDI) and the Balance of Payments (BoP).
According to the latest data, the current account recorded a surplus of Rs. 802.06 billion during the review period, more than doubling from the Rs. 321.74 billion surplus recorded during the same period of the previous fiscal year.
In US dollar terms, the current account surplus increased to USD 5.53 billion, compared to USD 2.37 billion in the corresponding period last year.
Meanwhile, net capital transfers rose to Rs. 17.03 billion, up from Rs. 8.96 billion during the same period of the previous fiscal year.
Foreign direct investment (FDI) also showed notable growth. Nepal received Rs. 22.82 billion in FDI equity inflows during the review period, more than double the Rs. 11.07 billion recorded in the same period a year earlier.
The country’s Balance of Payments (BoP) also remained comfortably in surplus, reaching Rs. 926.06 billion, compared to a surplus of Rs. 491.44 billion during the corresponding period of the previous fiscal year.
In US dollar terms, the BoP surplus increased to USD 6.39 billion, up from USD 3.62 billion recorded in the same period last year.
Foreign Exchange Reserves
Gross foreign exchange reserves increased 40.3 percent to Rs.3755.64 billion in mid-June 2026 from Rs.2677.68 billion in mid-July 2025. In US Dollar terms, the gross foreign exchange reserves increased 26.5 percent to 24.68 billion in mid-June 2026 from 19.50 billion in mid-July 2025.
Of the total foreign exchange reserves, the reserves held NRB increased 37.9 percent to Rs 3330.07 billion in mid-June 2026 from Rs. 2414.64 billion in mid-July 2025.
Reserves held by banks and financial institutions (except NRB) increased 61.8 percent to Rs.425.57 billion in mid-June 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-May
2026.
Foreign Exchange Adequacy Indicators
Based on the imports of the eleven months of 2025/26, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 22.5 months, and merchandise and services imports of 19.1 months.
The ratio of reserves-to-GDP, reserves-toimports and reserves-to-M2 stood at 61.5 percent, 159.5 percent, and 43.7 percent respectively in mid-June 2026. Such ratios were 43.8 percent, 128.1 percent, and 34.1 percent respectively in midJuly 2025.
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