Nepal Foreign Currency Flow Analysis 2026
Understanding Nepal's foreign currency flows is critical for assessing economic health. This analysis maps all major inflows and outflows of foreign currency for 8 months of FY 2025/26, based on NRB BoP data.
Major Foreign Currency Inflows (8M 2025/26)
| Source | Amount |
|---|---|
| Workers Remittances | Rs. 1,449,652.62M (~$10,149M) |
| Merchandise Exports | Rs. 191,112.03M |
| Tourism & Travel Receipts | Rs. 56,782.79M (2024/25 data) |
| Computer/IT Services Exports | Rs. 10,617.86M (2024/25 data) |
| Foreign Aid (Capital Grants) | Rs. 6,428.29M |
| FDI Inflows | Modest (Rs. 5,492.79M in 2024/25) |
Major Foreign Currency Outflows (8M 2025/26)
| Use | Amount |
|---|---|
| Merchandise Imports | Rs. 1,289,250.23M |
| Education Abroad (Payments) | Rs. 88,924.32M (2024/25 data) |
| Travel/Tourism Abroad | Rs. 147,573.27M (2024/25 data) |
| Foreign Loan Repayments | Rs. 28,021.87M (govt, 2024/25) |
| Dividend Payments to Foreign Investors | Rs. 14,866.83M (2024/25 data) |
The Net Picture
Nepal's net foreign currency position is positive: the current account surplus of Rs. 552,847.68M means more currency is flowing in than out. The primary driver is remittances — accounting for roughly 85% of all foreign currency inflows by value.
Key Observations
- Remittances dwarf all other inflows combined — even exports + tourism + FDI together are less than 20% of remittance value
- Education abroad is a major outflow — Rs. 88,924M (2024/25) spent on Nepali students studying overseas, nearly matching tourism receipts
- Petroleum imports (Rs. 185,208M) alone consume more forex than total merchandise exports generate
- IT service exports emerging — Rs. 10,617M in computer services shows a growing knowledge economy
Conclusion
Nepal's foreign currency flows are dominated by two forces: remittance inflows and import outflows. The net position is healthy in 2025/26, but the concentration risk is clear — Nepal needs to grow its export, tourism, and IT service earnings to reduce its near-total dependence on migrant worker remittances for foreign exchange.