Nepal’s Balance of Payments (BOP) recorded a surplus of Rs 346.23 billion in the first nine months of Fiscal Year (FY) 2024/25, slightly down from Rs 365.16 billion in the same period last fiscal year, according to the Nepal Rastra Bank’s latest monetary policy review.
The current account remained positive, with a surplus of Rs 210.22 billion compared to Rs 179.83 billion during the corresponding period last year. In US dollar terms, the surplus stood at $1.55 billion, up from $1.35 billion in the previous year. Meanwhile, the BOP surplus in dollar terms was $2.55 billion, a decline from $2.75 billion recorded in the same period last year.
The central bank also reported a net capital transfer of Rs 7.71 billion during the review period, an increase from Rs 4.78 billion the year before. Foreign direct investment (FDI), in the form of equity, rose to Rs 8.96 billion from Rs 6.49 billion during the same timeframe.
Foreign Exchange Reserves Surge
Gross foreign exchange reserves reached Rs 2,426.84 billion by mid-April 2025, marking an 18.9 percent increase from Rs 2,041.10 billion in mid-July 2024. In dollar terms, reserves climbed 15.4 percent to $17.63 billion from $15.27 billion over the same period.
Of the total reserves, those held by NRB stood at Rs 2,136.46 billion — a 15.6 percent rise from mid-July 2024. Reserves held by banks and financial institutions (excluding NRB) saw a significant jump of 50.8 percent to Rs 290.38 billion.
The share of Indian currency in the total reserves was 20.4 percent as of mid-April 2025.
Reserve Sufficiency
Based on the current import trend, Nepal’s foreign exchange reserves are sufficient to cover 17.1 months of prospective merchandise imports and 14.2 months of combined merchandise and services imports. Key ratios stood as follows in mid-April 2025:
- Reserves-to-GDP: 39.7%
- Reserves-to-Imports: 118.7%
- Reserves-to-M2 (broad money supply): 32.8%
These indicators have improved from mid-July 2024, when the respective ratios were 35.8%, 108.6%, and 29.3%.
