Finance

Remittance Inflows Surge 19.2% to Rs 1,723.27 Billion in FY 2024/25

Nepal’s remittance-driven economy posts stronger foreign exchange cushion, covering 15.4 months of merchandise and services imports imports

August 24, 2025

Remittance inflows to Nepal jumped 19.2 percent to Rs 1,723.27 billion in fiscal year 2024/25, compared to a 16.5 percent rise the year before, according to the latest macroeconomic update released by Nepal Rastra Bank (NRB) on Sunday, August 24.

In the final month of the last fiscal year (mid-June to mid-July 2025), inflows stood at Rs 189.11 billion, sharply higher than Rs 117.78 billion in the same period a year earlier.

The central bank report highlights remittances as Nepal’s largest source of foreign exchange. In US dollar terms, inflows rose 16.3 percent to $12.64 billion, following a 14.5 percent increase in FY 2023/24. Net secondary income, which includes net transfers, reached Rs 1,874.30 billion, up from Rs 1,571.24 billion a year earlier.

Labour migration, the backbone of remittance earnings, also expanded. A total of 505,957 workers received first-time approvals for foreign employment, while 333,309 secured re-entry permits. In the previous fiscal year, the figures stood at 460,102 and 281,195, respectively.

Stronger inflows helped boost the country’s external position. Nepal’s gross foreign exchange reserves climbed 31.2 percent to Rs 2,677.68 billion in mid-July 2025, from Rs 2,041.10 billion a year earlier. In US dollar terms, reserves rose 27.7 percent to $19.50 billion from $15.27 billion.

Of the total reserves, holdings at NRB grew 30.6 percent to Rs 2,414.64 billion, while those held by banks and financial institutions surged 36.6 percent to Rs 263.04 billion. The share of Indian currency in total reserves stood at 23.1 percent in mid-July 2025.

According to NRB, the foreign exchange stockpile is sufficient to cover 18.2 months of prospective merchandise imports, and 15.4 months of combined merchandise and services imports. The reserves-to-GDP ratio rose to 43.8 percent from 35.8 percent last year, while reserves-to-imports improved to 128.1 percent from 108.6 percent. The reserves-to-M2 (broad money) ratio also increased to 34.1 percent from 29.3 percent.