NRB Reports Foreign Assets Surge by 33.3% to Rs. 2.65 Trillion in August 2025

Nepal Rastra Bank (NRB) has reported a substantial 33.3% year-on-year surge in foreign assets, reaching Rs. 2.65 trillion by mid-August 2025, as shown in its latest Central Bank Survey. This remarkable expansion — equivalent to a rise of more than Rs. 650 billion compared to the same period last year — highlights Nepal’s strong external position amid global and domestic uncertainties.

According to the data, foreign exchange reserves alone jumped to Rs. 2.51 trillion, while gold investments increased to Rs. 120.7 billion, reflecting a steady build-up of safe assets. The rise was primarily driven by robust remittance inflows, the growing surplus in the balance of payments, and a slight improvement in financial account inflows. Analysts believe this surge gives the country a powerful cushion against external shocks, providing import coverage of over 20 months — the highest in years.

However, despite this encouraging foreign position, domestic indicators tell a different story. NRB’s reserve money fell by 5.6% during the same period, mainly due to declining deposits from commercial and development banks. This has kept the banking sector’s liquidity tight, even as the central bank’s reserves soar. Economists warn that Nepal faces a unique imbalance: an economy rich in foreign reserves but short on domestic liquidity, which could constrain credit growth and private investment.

The government’s large cash holdings at NRB — which increased by Rs. 96 billion to Rs. 226.6 billion — have further limited the circulation of funds in the real economy. While it reflects strong tax and customs revenue performance, it also suggests delayed capital expenditure.