Inflow of remittance rises 18 percent to Rs 136 billion in first month of current FY

FOREX reserves reach USD 15.58 billion, sufficient to finance goods and services import for 13.5 months

KATHMANDU, Sept 26: The amount of money sent by Nepalis abroad to Nepal through formal channels increased by 18 percent in the month of Shrawan (mid-July to mid-August), the first month of the current fiscal year 2024/25. 

According to Nepal Rastra Bank (NRB), remittances have increased by 18 percent and reached 136.93 billion.

During the review month this year, the number of Nepalis who took the final work permits (institutional and individual-new) for foreign employment was 36,928, while a total of  22,647 individuals had their work permit renewed. In the same period last year, these numbers stood at 39,152 and 16,423, respectively.

Likewise, the net secondary income (net transfer) reached Rs 148.49 billion, up from Rs 128.21 billion.

With a notable growth in remittance inflow in particular, the country’s gross foreign exchange (FOREX) reserves increased 2.5 percent to Rs 2,092.22 billion as of mid-August. Until mid-July, the reserve stood at Rs 2,041.10 billion. In the US dollar terms, the gross foreign exchange reserves increased two percent, to 15.58 billion from 15.27 billion in the review month.

According to the NRB, the country’s FOREX reserve is sufficient to cover the prospective merchandise imports of 16.7 months. Likewise, it can finance merchandise and services imports for the next 13.5 months.