Nepal’s Net Foreign Assets Surge by Rs. 89 Billion in August 2025

Nepal’s external sector showed strong resilience in August 2025, with Net Foreign Assets (NFA) rising by Rs. 89.0 billion, according to the Monetary Survey data. This jump brought total NFA to Rs. 2.79 trillion, reflecting sustained inflows from remittances and rising foreign exchange reserves.

The gain was primarily driven by a Rs. 131.9 billion rise in gross foreign assets, particularly foreign exchange reserves, which climbed to Rs. 2.95 trillion. On the liabilities side, foreign obligations also edged up slightly to Rs. 161.2 billion, but the overall impact remained positive for Nepal’s external balance sheet.

This improvement has helped strengthen Nepal’s import cover to over 20 months, providing a critical buffer against global oil price volatility and external shocks. Analysts note that robust remittance inflows, alongside restrained import growth, have been key to maintaining this favorable trend.

However, the picture is not entirely risk-free. While NFA expanded, net domestic assets contracted sharply by Rs. 147.3 billion, pointing to weak credit growth and liquidity absorption within the domestic banking system. Private sector credit growth remained subdued at just 0.2%, highlighting ongoing economic sluggishness despite stronger external balances.