Nepal’s Foreign Exchange Reserves Cross Rs. 2.88 Trillion – NRB Mid-September 2025/26 Data

Nepal Rastra Bank’s (NRB) Mid-September 2025/26 Macroeconomic Review highlights a major milestone in the country’s external sector performance — Nepal’s gross foreign exchange reserves have surpassed Rs. 2.88 trillion, equivalent to USD 20.41 billion. This marks one of the strongest reserve positions in Nepal’s economic history, providing over 13 months of import coverage, far exceeding international adequacy benchmarks.

According to NRB, the sharp rise in foreign exchange reserves is attributed to higher remittance inflows, a current account surplus, and controlled import growth. Remittance income reached Rs. 352 billion, up by 33% compared to the same period last year, while the current account surplus expanded to Rs. 130.7 billion. Simultaneously, the Balance of Payments (BOP) remained in strong surplus at Rs. 153.7 billion, indicating healthy foreign currency inflows across multiple channels.

Nepal’s export earnings also rose significantly by 47.3% to Rs. 277 billion, while imports increased by 16.2% to Rs. 305 billion. Although the trade deficit remains large, this combination of rising exports and remittances helped stabilize the overall external position. The increase in reserves reflects improved management of foreign inflows and NRB’s effective policy stance toward maintaining external stability.

The rise in reserves has not only strengthened Nepal’s macroeconomic fundamentals but also provided the government and NRB with greater flexibility to manage currency volatility and external shocks. A larger reserve cushion means Nepal can comfortably handle its import needs, debt repayments, and contingencies such as global commodity price spikes or capital outflows. The strong reserve position also supports investor confidence, exchange rate stability, and the credibility of the Nepali financial system.

Economists note that this buildup in reserves underscores the country’s improving balance of payments structure, supported by strong remittances and lower import dependency. However, they also caution that maintaining this stability will require sustained export growth and prudent fiscal management. Excessive reliance on remittance inflows may pose long-term risks if not backed by robust domestic production and investment growth.

In the broader context, the foreign exchange reserve surge aligns with the ongoing trend of economic normalization after the pandemic, with inflation under control, stable financial conditions, and improving external balances. With inflation falling to 1.87%, interest rates easing, and liquidity improving, Nepal’s external and financial sectors appear to be on a more stable footing heading into 2026.