Remittance Inflow Reaches Rs 763 Billion in Six Months: NRB

Remittance inflow into Nepal in the first six months of the current fiscal year stood at Rs 763.08 billion, according to the latest report of Nepal Rastra Bank.

The Current Macroeconomic and Financial Situation Report of Nepal published by the central bank on Sunday mentions that the remittance inflow increased by 4.1 percent in the review period against an increase of 22.2 percent in the corresponding period of the last fiscal year.

In terms of the US dollar, remittance inflows increased 1.1 percent to 5.58 billion in the review period compared to an increase of 19.5 percent in the corresponding period of the previous year, added the report

According to the central bank, 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.

Similarly, the number of Nepali workers, both institutional and individual, taking first-time approval for foreign employment stood at 230,439 while those taking approval for renew entry stood at 162,628.  In the previous year, such numbers were 206,390 and 133,940 respectively.

Meanwhile,, Nepal’s 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, added the NRB report.

In terms of the US dollar, 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. According to the NRB report, the share of Indian currency in total reserves stood at 24.3 percent in mid-January 2025.

According to the central bank, 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.