Nepal has recorded its highest monthly remittance, with an approximate USD 1.44 billion inflow between mid-September and mid-October. This marks the first time monthly remittance has crossed the USD 1.4 billion mark, a significant increase from the previous USD 1.03 billion during the same period.
According to Nepal Rastra Bank, the central bank, the sharp rise was influenced by the festive season, when Nepalis abroad traditionally increase financial support to their families. A stronger dollar, anti-money-laundering enforcement regulations, and a shift toward formal banking channels are major contributors.
Total remittances for the first quarter of the fiscal year reached USD 3.95 billion, representing a 29.2 per cent increase compared to the same quarter last year. The growth in inflows has helped maintain a positive balance of payments and a widening current account surplus. Remittances remain one of Nepal’s most stable sources of foreign income, reinforcing foreign exchange reserves and supporting overall macroeconomic stability, especially after the Gen Z revolt in early September.
The rise in labour migration played a decisive role in the surge. In the first quarter alone, 123,459 Nepalis received new labour approvals, and an additional 77,257 renewed their permits, bringing total departures to 200,716. This represents an average of more than 2,200 migrant workers leaving the country each day, excluding students and other categories of travellers.
Nepal’s foreign exchange reserves rose to USD 21.21 billion by mid-October, an increase of 8.7 per cent since mid-July. At present, the reserves are sufficient to sustain more than 16 months of combined goods and services imports. Reserves held by both the central bank and commercial banks have increased due to the steady inflow of remittances and reduced import pressure resulting from lower domestic demand.
Despite the initial benefits, the rising dependence on foreign labour shows deeper structural challenges. The recent youth-led protests have revealed growing frustration over unemployment, corruption, and governance failures.
High remittances surely aid national reserves and household finances; however, economists warn that the long-term effects of outmigration will lead to worse outcomes, from a diminishing workforce and reduced productivity to inadequate domestic economic capacity.
