Remittance Inflows Jump 33.1 Percent to Rs 352 Billion in Two Months

Remittance inflows surged 33.1 percent to Rs 352.08 billion in the first two months of the current fiscal year 2025/26, compared to a 15.8 percent rise in the same period last fiscal year, according to the latest report from Nepal Rastra Bank (NRB).

The Current Macroeconomic and Financial Situation Report, published Tuesday, October 14, shows that during mid-August to mid-September (Bhadra), remittance inflows reached Rs 174.67 billion, up from Rs 127.99 billion in the same month previous year.

In U.S. dollar terms, remittance inflows rose 27.6 percent to $2.52 billion, compared to a 14.2 percent increase in the same period last year.

The rise in remittances contributed to a strong buildup in foreign exchange reserves, which climbed 7.6 percent to Rs 2,881.35 billion by mid-September 2025, up from Rs 2,677.68 billion in mid-July 2025. In dollar terms, reserves increased 4.7 percent to $20.41 billion from $19.50 billion over the same period.

Of the total reserves, those held by NRB rose 6.9 percent to Rs 2,582.38 billion, while reserves held by banks and financial institutions (excluding NRB) increased 13.7 percent to Rs 298.97 billion. The share of Indian currency in total reserves stood at 22.5 percent in mid-September.

Based on recent import trends, Nepal’s current foreign exchange holdings are sufficient to cover 19.7 months of merchandise imports and 16 months of combined goods and services imports.

The reserves-to-GDP, reserves-to-imports, and reserves-to-M2 ratios stood at 47.2 percent, 133.1 percent, and 36.6 percent, respectively, in mid-September—up from 43.8 percent, 128.1 percent, and 34.1 percent in mid-July 2025.

The report also noted an increase in the number of Nepalis leaving for foreign employment. First-time approvals for overseas jobs reached 90,198, and renewal approvals stood at 45,884, compared to 76,485 and 40,583, respectively, in the same period last year.

The current account recorded a surplus of Rs 130.69 billion, more than double the Rs 54.41 billion surplus from the previous year. In U.S. dollar terms, the surplus reached $934.7 million, up from $405.6 million a year earlier.

Similarly, the balance of payments (BOP) remained in surplus at Rs 153.68 billion, compared to Rs 101.77 billion a year earlier. In dollar terms, the BOP surplus stood at $1.10 billion, up from $758.4 million in the same period last year.