Remittance Boom: Nepal Records 19.25% Increase, Hits Rs 1,198.6 Billion

Remittance inflows into Nepal have surged by a robust 19.2% during the first 10 months of the fiscal year 2023/24, reaching an impressive Rs 1,198.6 billion. This growth, as reported by the Current Macroeconomic and Financial Situation Report, marks a significant acceleration compared to the 23.4% increase observed in the corresponding period of the previous fiscal year.

In US dollar terms, remittances grew by 17.1% to reach $9.02 billion, further underlining the resilience of Nepal’s remittance-dependent economy.

Moreover, the country’s current account showcased a remarkable turnaround, registering a surplus of Rs 193.25 billion in the review period, a notable shift from the deficit of Rs 63.74 billion recorded in the previous year. Similarly, the balance of payments (BOP) exhibited a surplus of Rs 392.64 billion, compared to Rs 209.49 billion in the corresponding period of the previous fiscal year. In US dollar terms, the BOP surplus stood at $2.95 billion in mid-May, reflecting a substantial increase from $1.59 billion in the same period last year.

Notably, Nepal’s foreign exchange reserves witnessed a significant uptick of 26.2%, reaching Rs 1,942.4 billion in mid-May 2024. In US dollar terms, this translates to a reserve worth $14.54 billion. According to the report, the current reserves are robust enough to cover 15.1 months of merchandise imports and 12.6 months of merchandise and services imports, further bolstering the country’s economic resilience.