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By Sandeep Chaudhary

Net Foreign Assets Surge 36.8% to Rs 2.88 Trillion, Driven by Strong Reserve Growth – NRB Data 2025/26

Net Foreign Assets Surge 36.8% to Rs 2.88 Trillion, Driven by Strong Reserve Growth – NRB Data 2025/26

According to the latest Monetary Survey (Mid-September 2025) published by the Nepal Rastra Bank (NRB), Nepal’s Net Foreign Assets (NFA) have increased by a substantial 36.8% year-on-year, reaching Rs 2.88 trillion. The sharp rise reflects Nepal’s strengthening external sector stability, primarily fueled by the growth in foreign exchange reserves, steady remittance inflows, and improving tourism earnings following global travel recovery.

Reserves at Record High

The report shows that foreign assets jumped by 34.3%, totaling Rs 3.04 trillion in mid-September 2025, compared to Rs 2.26 trillion a year earlier. This surge was supported by consistent remittance receipts, controlled import spending, and a favorable balance of payments. Meanwhile, foreign liabilities rose only slightly by 0.7%, keeping Nepal’s net reserve position robust.
Within total foreign liabilities, deposits grew by 20.1%, reflecting improved liquidity and financial confidence, while “other liabilities” declined by 15.6%, suggesting reduced external obligations.

Monetary and Economic Implications

The significant increase in foreign assets has played a vital role in enhancing Nepal’s external stability, reducing currency pressure, and supporting adequate import cover, which currently stands at around 16 months. The surge in NFA also contributed directly to the expansion of broad money supply (M2), which rose by 12.4%, highlighting a healthy liquidity position in the financial system.
Economists note that such an increase in reserves provides a strong policy buffer for the central bank to manage potential external shocks and maintain exchange rate stability.

NRB’s Policy Response

NRB’s balanced approach—focusing on foreign reserve accumulation while maintaining moderate domestic credit growth—has proven effective in sustaining macroeconomic stability. The data further indicate that private sector credit grew by 7.3%, showing cautious optimism in the domestic lending environment.

This expansion of foreign assets combined with controlled domestic borrowing signals that Nepal’s financial system is entering a phase of stability, supported by improved fiscal discipline and external resilience.

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