Remittances rise 35.4% in first quarter of FY 2025/26, reports NRB

Remittance inflows surged 35.4% in Nepali rupees during the first three months (mid-July to mid-October) of fiscal year 2025/26, reaching NRs 553.31 billion, compared to the same period last year, reported Nepal Rastra Bank (NRB). In US dollar terms, remittances increased 29.2%, reaching $3.94 billion. Between mid-September and mid-October alone, remittances totaled NRs 201.22 billion.

The current account surplus stood at NRs 237.59 billion compared to NRs 115.36 billion in the same period of the previous year. The balance of payments recorded a surplus of NRs 264.03 billion, compared to NRs 184.99 billion last year. Meanwhile, gross foreign exchange reserves reached NRs 2,979.81 billion ($21.21 billion), enough to cover 16.4 months of prospective imports of goods and services.

Consumer price inflation remained subdued at 1.47% year-on-year, significantly lower than last year’s 4.82%. Food and beverage prices fell by 2.54%, while non-food and service inflation rose 3.80%. Wage growth accelerated slightly, with the salary and wage index up 4.48% compared to 3.31% a year ago.

Trade activity recorded mixed results. Exports jumped 89.6% to NRs 72.78 billion, largely driven by shipments to India, while imports rose 19.8% to NRs 468.08 billion, resulting in a trade deficit of NRs 395.3 billion. The export-import ratio improved to 15.5% from 9.8% a year ago.

On the fiscal side, government expenditure totalled NRs 364.59 billion, with tax revenue at NRs 234.33 billion. Broad money (M2) grew 12.2% year-on-year, while private sector credit increased 7.3%.

NRB also reported that liquidity management measures, including interbank transactions and foreign currency purchases, helped stabilise the financial system. In the capital market, the NEPSE index stood at 2487.18 points as of mid-October, with market capitalisation at NRs 4,157.9 billion, or 68% of GDP.