Yes, that is what it means. I may be wrong, but I see a little flexibility with the context this question could be expressed in. For example, you may ask somebody that question when both of you are already practicing English.
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GPYThere seems no particular reason to include the word "now".Sorry this wasn't very clear ... I mean there seems no reason to introduce the word "now" in the explanation when it was not present in the original. Of course, you can say "How (good) is your English now?" if you want to emphasise "now" versus some time in the past.