Nepal’s Net Foreign Assets Rise 5.2% to USD 20.42 Billion – Stable Import Cover of 16 Months

Nepal’s Net Foreign Assets (NFA) have grown by 5.2%, reaching USD 20.42 billion as of mid-September 2025, according to the latest data from the Nepal Rastra Bank (NRB). This steady increase underscores the country’s external sector stability and strong foreign exchange management, backed by robust remittance inflows, controlled imports, and a rebound in tourism earnings.

The NRB report indicates that the total gross foreign exchange reserves climbed to USD 20.41 billion, up 4.7% from mid-July 2025. The convertible reserves component, which can be freely used for international payments, rose by 5.5%to USD 15.82 billion, while inconvertible reserves increased by 2.0% to USD 4.59 billion. These reserves now provide an import cover of 16 months for goods and services and nearly 20 months for merchandise imports, one of the strongest positions among South Asian economies.

Similarly, Nepal’s gross foreign assets reached USD 21.53 billion, marking a 4.8% rise within two months. The Nepal Rastra Bank’s holdings of foreign assets grew to USD 19.42 billion, a 4.2% increase, while Bank and Financial Institutions (BFIs) expanded their holdings by 10.6% to USD 2.12 billion. This increase in BFI-held foreign assets reflects higher remittance-related deposits and growing international investment exposure.

Meanwhile, foreign liabilities slightly declined to USD 1.12 billion, contributing to the rise in Net Foreign Assets. The reserves-to-GDP ratio improved to 47.2%, while reserves-to-imports reached 133.1%, both signaling robust liquidity and external health. The exchange rate stood at Rs 141.14 per USD, reflecting minor currency depreciation, which helped boost valuation gains on foreign holdings.

Economists note that Nepal’s strong NFA growth demonstrates its ability to maintain external balance and build monetary stability despite global challenges. They credit the NRB’s conservative monetary approach, effective remittance management, and exchange rate discipline as key drivers behind the improved foreign asset position. However, they also emphasize the need for export diversification, investment in productive sectors, and reduced import dependencyto ensure that external strength translates into sustainable economic growth.