Remittance inflow sets new record; Rs 136 billion received in a single month; Foreign exchange reserves increase by 6.7 percent

Kathmandu / Nov 10: In the Nepali month of Ashoj (mid-September to mid-October) this year, the remittance inflow has set a new record. As much as Rs 136 billion was received in remittances in this month. This marks the highest amount ever received in a single month.

In the current fiscal (FY) 2023/24, up to the month of Bhadra (Mid-August to mid-September), Rs 228 billion was received, and this amount increased to Rs 365 billion in Ashoj.

According to Nepal Rastra Bank (NRB), Rs 136 billion in remittances was received in the month of Ashoj.

The NRB reports that the remittance received up to this month has increased by 30 percent compared to the same period in the previous fiscal year 2022/23. In Ashoj of the previous year, the remittance inflow had increased by only 16.8 percent.

According to the officials of the NRB, the remittance inflow in US dollars stood at 2.76 billion, which is 25.9 percent more than the same period of the previous year. Nepal usually receives higher amounts of remittances in the month of Ashoj as this month marks the arrival of the greatest festival season in the country.

According to NRB officials, the number of individuals who obtained the work permits until Ashoj stands at 113,397, and the count of those who renewed their work permits is 49,297, which is lower than the previous year.

In the first quarter of the previous year, 147,932 people acquired the final work permit, and 57,861 people renewed their labor permits, according to data from the NRB.

Foreign exchange reserves increase by 6.7 percent in 3 months

The country’s foreign exchange reserves have increased by 6.7 percent in three months.

According to the financial report of the first three months of the current fiscal year published by Nepal Rastra Bank (NRB), the foreign exchange reserves which were equal to Rs 1.54 trillion till mid-July have increased to Rs 1.64 trillion till mid-October.

During that period, such reserves in US dollars increased by 5.3 percent to 12.33 billion dollars. The share of the Indian currency in total foreign exchange reserves is 22 percent.

Of the total foreign exchange reserves, the NRB has Rs 1.43 trillion, while other banks and financial institutions have Rs 297.3 billion.

According to the officials of the NRB, the current foreign exchange reserves will be enough to support 12.4 months of goods imports and 10.3 months of goods and services imports based on current imports.