NRB Data Shows Foreign Exchange Reserves Cross Rs. 2.5 Trillion in 2025

The Nepal Rastra Bank’s (NRB) Central Bank Survey for mid-August 2025 has confirmed a historic milestone: foreign exchange reserves have crossed Rs. 2.5 trillion, strengthening Nepal’s external financial position. The reserves climbed to Rs. 2.51 trillion, up from Rs. 1.99 trillion in August 2024, marking a significant annual growth of 33.3 percent (Rs. 664.9 billion).

The growth was primarily driven by foreign exchange holdings, which surged by Rs. 628 billion (33.3%) year-on-year to reach Rs. 2.51 trillion, supported by record remittance inflows, lower imports, and stable foreign earnings. Additionally, gold reserves jumped 42.8 percent to Rs. 120.7 billion, reflecting the central bank’s strategy of diversifying assets.

On the liabilities side, however, foreign liabilities also increased by 6.8 percent (Rs. 2.6 billion), mainly due to higher foreign deposits. Despite this, Nepal’s net foreign assets (NFA) soared by Rs. 662 billion, underscoring strong external resilience.

Economists note that Nepal’s reserves now provide import cover for more than 20 months, among the highest in South Asia. While this offers a cushion against global shocks, analysts caution that simply holding reserves without channeling funds into productive investment sectors such as energy, manufacturing, and exports could weaken long-term growth potential.