Himal Press 
KATHMANDU: Remittance inflows increased by 9.1% to Rs 521.63 billion in the first four months of fiscal year 2024/25, compared to a 22.5% rise in the same period last year.
According to the Current Macroeconomic Situation Report for the first four months of FY 2024/25 released by the Nepal Rastra Bank on Thursday, remittances, in US dollar terms reached $3.87 billion, up from $3.60 billion last year.
Likewise, the current account remained at a surplus of Rs 143.42 billion during the period, an improvement from Rs 97.10 billion during the same period last year.
Under the service account, travel income rose by 3.8% to Rs 26.84 billion, while travel payments jumped by 10.3% to Rs 68.31 billion, including Rs 37.72 billion spent on education abroad.
Similarly, foreign direct investment (equity only) surged by 57.9% to Rs 5.76 billion, reflecting increased investor confidence. Meanwhile, the balance of payments recorded a surplus of Rs 205.83 billion, up from a surplus of Rs 150.24 billion in the same period last year.
Foreign exchange reserves expand by 10.5%
Gross foreign exchange reserves increased 10.5% to Rs 2,255.35 billion in mid-November, up from Rs 2,041.10 billion in mid-July 2024.
In US dollar terms, the gross foreign exchange reserves expanded by 9.4% to $16.70 billion in mid-November, compared to $15.27 billion in mid-July 2024.
Of the total foreign exchange reserves, reserves held by NRB increased by 8.6% to Rs 2,008.15 billion, while reserves held by banks and financial institutions went up by 28.4% to Rs 247.20 billion in mid-November 2024 from Rs 192.55 billion in mid-July 2024.
Based on the imports of four months of 2024/25, the foreign exchange reserves of the banking sector are sufficient to cover the prospective merchandise imports of 18 months and merchandise and services imports of 15.1 months.
