Gross foreign exchange reserves of Nepal stood at 18.40 billion US Dollars, which is an all-time high, driven largely by a surge in remittance inflows. According to a current macroeconomic and financial situation report released by the Nepal Rastra Bank (NRB), Remittances increased 10.5 per cent in USD terms. Gross foreign exchange reserves rose to NPR 2,512.95 billion in mid-May 2025, up by 23.1 per cent compared to the same period last year.

Notably, Rs. 86.11 billion was added in a single month between mid-April and mid-May 2025, strengthening Nepal’s external financial position. Imports and exports increased 13.1 per cent and 72.7 per cent, respectively. Destination-wise, exports to India, China and other countries increased 104.7 per cent, 5.1 per cent and 4.2 per cent, respectively. Exports of soybean oil, polyester yarn and thread, tea, jute goods, and oil cakes, among others, increased. The trade deficit continues to be high.

Four major sectors as export, foreign direct investment, foreign aid and tourism, are the main sources of foreign currency earnings. But in Nepal, it is the remittance that has strengthened the foreign currency reserves. Nepali workers are spread across 174 countries in the world, with India, the Middle East, Malaysia, South Korea, Japan, Australia, New Zealand and the European Union having huge populations of skilled and unskilled human resources. The rising foreign reserves now represent 44 per cent of Nepal’s gross domestic product (GDP).

In the review period, the number of Nepali workers, both institutional and individual, taking first-time approval for foreign employment stands at 405,610 and taking approval for renewal entry stands at 280,314.