Foreign exchange reserves rise 45.6%, enough to cover 23 months of imports

Kathmandu, August 27

Nepal’s total foreign exchange reserves rose 45.6 percent year-on-year to Rs 3.897 trillion by the end of the last fiscal year, according to Nepal Rastra Bank.

The reserves stood at Rs 2.678 trillion at the end of fiscal year 2024/25.

In US dollar terms, the country’s reserves increased 29.8 percent to $25.31 billion, from $19.50 billion a year earlier.

The central bank said the reserves are sufficient to cover 23 months of merchandise imports and 19.6 months of merchandise and services imports, based on imports recorded during fiscal year 2025/26.

Central bank holds most of the reserves

Of the total reserves, those held by Nepal Rastra Bank increased 43.8 percent to Rs 3.473 trillion from Rs 2.415 trillion a year earlier.

Foreign exchange reserves held by banks and financial institutions rose 61.4 percent to Rs 424.48 billion, compared with Rs 263.04 billion at the end of the previous fiscal year.

Indian currency accounted for 22.3 percent of Nepal’s total foreign exchange reserves as of mid-July 2026.

Reserves-to-GDP ratio rises

The central bank said foreign exchange reserves were equivalent to 63.8 percent of GDP at the end of fiscal year 2025/26.

Reserves were equivalent to 163.4 percent of total imports and 43.8 percent of broad money supply.

A year earlier, the corresponding ratios were 43.8 percent, 128.1 percent and 34.1 percent, respectively.

Net foreign assets rise

Nepal’s total foreign assets stood at Rs 4.263 trillion, while foreign liabilities amounted to Rs 2.446 trillion at the end of the fiscal year.

This left the country with a net foreign asset position of Rs 1.817 trillion, up from a surplus of Rs 779.77 billion a year earlier.

The post Foreign exchange reserves rise 45.6%, enough to cover 23 months of imports appeared first on OnlineKhabar English News.