External Sector Strengthens: Foreign Exchange Reserves at USD 22.13 Billion, Current Account Surplus at NPR 358.83 Billion

Kathmandu. Nepal's external sector is currently in a favorable position, according to the latest data published by Nepal Rastra Bank for the fiscal year 2082/83 (2025-2026) up to the month of Mangsir (mid-December). Foreign exchange reserves, the current account, and remittance positions all show positive indicators, signaling an overall strengthening of the country's external economic condition.

According to Nepal Rastra Bank, the foreign exchange reserves have seen significant growth. The total foreign exchange reserves stood at NPR 2.677 trillion (USD 19.5 billion) at the end of Asar (mid-July) 2082, and by Mangsir, the reserves had increased by 19.6%, reaching NPR 3.21 trillion (USD 22.13 billion).

Of the total reserves, Nepal Rastra Bank holds NPR 2.866 trillion, while commercial banks and financial institutions hold NPR 335 billion. As of Mangsir, the share of Indian rupees in the total foreign exchange reserves stands at 22.2%.

The current foreign exchange reserves are adequate to cover 21.7 months of goods imports and 18.2 months of goods and services imports. When compared with the imports for the first five months of FY 2082/83, this level of reserves provides sufficient coverage for Nepal's external trade needs.

As per the latest data, the ratios of foreign exchange reserves to Gross Domestic Product (GDP), total imports, and broad money supply are 52.4%, 151.9%, and 39.4%, respectively, at the end of Mangsir 2082. In comparison, at the end of Asar 2082, these ratios were 43.8%, 128.1%, and 34.1%. This indicates a robust growth in reserves and an improved external sector position.

Current Account Surplus of NPR 358.83 Billion

As of Mangsir, the current account surplus stands at NPR 358.83 billion. In the same period last year, the current account surplus was only NPR 158.45 billion. In US dollar terms, the current account surplus has increased to USD 254 million, compared to USD 118 million last year.

During the review period, net capital transfers amounted to NPR 7.06 billion, compared to NPR 3.50 billion during the same period last year. Similarly, foreign direct investment (equity only) saw an inflow of NPR 7.47 billion, up from NPR 6.03 billion in the previous year.

Remittance Situation Strengthened

The remittance situation also remains strong, with remittance inflows showing healthy growth. As of Mangsir, remittances stand at NPR 421.89 billion, a significant increase from NPR 225.34 billion in the same period last year. In dollar terms, remittance savings have reached USD 298 million.