Nepal’s Foreign Exchange Reserves Surge to Historic High in FY 2024/25

Nepal's foreign exchange reserves have reached an all-time high, reflecting a strong recovery in external sector stability. According to the data released by Nepal Rastra Bank, the gross foreign exchange reserves as of mid-June 2025 stand at Rs. 2,569.4 billion, marking a significant increase from Rs. 1,967.2 billion recorded at mid-June 2024. This sharp rise underscores improved remittance inflow, reduced imports, and strengthened current account balances over the past year.

In terms of US dollars, the reserves rose from USD 14.72 billion in mid-June 2024 to USD 18.65 billion in mid-June 2025. This increase of nearly USD 4 billion within a year not only highlights robust foreign currency earnings but also positions Nepal with sufficient import coverage, enhancing its economic resilience against external shocks.

Looking at the annual trends, the gross reserves in rupees have shown a consistent rise over the last three years: from Rs. 1,215.8 billion in FY 2021/22 to Rs. 1,539.4 billion in FY 2022/23, and further to Rs. 2,041.1 billion in FY 2023/24. The reserves in USD followed a similar pattern, recovering from a dip in FY 2021/22 (USD 9.51 billion) to USD 15.27 billion by FY 2023/24.

This steady improvement signifies Nepal's better management of its external sector, aided by increased remittances, a narrowing trade deficit, and disciplined monetary policies. With reserves now surpassing USD 18.6 billion, Nepal is in a much stronger position to meet its short-term external obligations and sustain economic stability in the face of global uncertainties.