Nepal’s Foreign Assets Hit Record Rs 3 Trillion – Convertible Reserves Up by 8.4%

According to the Nepal Rastra Bank’s (NRB) Mid-September 2025 macroeconomic report, Nepal’s gross foreign assets have climbed to a record Rs 3.03 trillion, reflecting a 7.7% increase from mid-July 2025. This growth underscores the country’s improving external stability and strong foreign currency holdings, supported by resilient remittance inflows, controlled imports, and increased foreign investments through the banking sector.

The report reveals that convertible reserves, which include foreign currencies and liquid assets readily usable for trade and external payments, surged by 8.4%, reaching Rs 2.23 trillion. Similarly, inconvertible reserves rose by 4.9% to Rs 648 billion. Overall foreign exchange reserves now total Rs 2.88 trillion, providing an import cover of 16 months for goods and services and nearly 20 months for merchandise imports—a strong indication of Nepal’s economic buffer and liquidity.

The Nepal Rastra Bank’s own holdings of foreign assets reached Rs 2.74 trillion, up 7.1%, while Bank and Financial Institutions (BFIs) saw their foreign assets increase by 13.7% to Rs 299 billion. This joint growth has strengthened the Net Foreign Assets (NFA) of the banking sector, which now stands at Rs 2.88 trillion, showing an 8.2% annual rise. Meanwhile, foreign liabilities remained stable at Rs 157.5 billion, indicating a balanced and sustainable foreign sector.

Economists view this record level of foreign assets as a sign of Nepal’s growing macroeconomic resilience, driven by steady remittance inflows, revived tourism earnings, and disciplined monetary policy. The reserves-to-GDP ratioimproved to 47.2%, while reserves-to-imports reached 133.1%, highlighting strong external liquidity. The Nepali rupee’s exchange rate averaged Rs 141.14 per USD in mid-September 2025, reflecting a gradual depreciation trend in line with global currency adjustments.

Despite the positive indicators, experts caution that Nepal must focus on export diversification, productive sector investment, and sustainable exchange rate management to maintain long-term economic health. They emphasize that while high reserves are beneficial, sustainable growth requires channeling foreign inflows into infrastructure, industry, and employment-generating sectors.