The current account remained at a surplus of Rs 210.22 billion in the last nine months of the current fiscal year 2024/25 compared to a surplus of Rs 179.83 billion in the same period of the previous year.

In the US Dollar terms, the current account registered a surplus of 1.55 billion in the review period against a surplus of 1.35 billion in the same period last year.

The Nepal Rastra Bank (NRB) stated this in its Review of the Monetary Policy of the Current Fiscal Year 2024/25.

The Balance of Payments (BOP) remained at a surplus of Rs 346.23 billion in the nine months of the current Fiscal Year 2024/25 compared to a surplus of Rs 365.16 billion in the same period of the previous year.

In the US Dollar terms, the BOP remained at a surplus of 2.55 billion in the review period compared to a surplus of 2.75 billion in the same period of the previous year.

The NRB stated that in the review period, net capital transfer amounted to Rs 7.71 billion. In the same period of the previous year, such a transfer amounted to Rs 4.78 billion. Similarly, in the review period, Rs 8.96 billion of foreign direct investment (equity only) was received. In the same period of the previous year, foreign direct investment inflow (equity only) amounted to Rs 6.49 billion.

Foreign Exchange Reserves

Gross foreign exchange reserves increased 18.9 per cent to Rs 2426.84 billion in mid-April 2025 from Rs 2041.10 billion in mid-July 2024. In US dollar terms, the gross foreign exchange reserves increased 15.4 per cent to 17.63 billion in mid-April 2025 from 15.27 billion in mid-July 2024.

Of the total foreign exchange reserves, the reserves held by NRB increased 15.6 per cent to Rs 2136.46 billion in mid-April 2025 from Rs 1848.55 billion in mid-July 2024.

Reserves held by banks and financial institutions (except NRB) increased 50.8 per cent to Rs 290.38 billion in mid-April 2025 from Rs 192.55 billion in mid-July 2024. The share of Indian currency in total reserves stood at 20.4 per cent in mid-April 2025.

Foreign Exchange Adequacy Indicators

Based on the imports of nine months of 2024/25, the foreign exchange reserves of the banking sector is sufficient to cover the prospective merchandise imports of 17.1 months, and merchandise and services imports of 14.2 months.

The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 39.7 per cent, 118.7 per cent and 32.8 per cent, respectively, in mid-April 2025. Such ratios were 35.8 per cent, 108.6 per cent and 29.3 per cent, respectively, in mid-July 2024.