NRB’s Foreign Assets Jump by Rs 182 Billion to Rs 2.74 Trillion in Mid-September 2025 – Central Bank Survey

According to the Central Bank Survey released by Nepal Rastra Bank (NRB), Nepal’s foreign assets surged to Rs 2.74 trillion in mid-September 2025, marking a strong increase of Rs 182.05 billion or 7.1% within just two months. This remarkable rise highlights Nepal’s improving external sector strength, driven by higher foreign exchange inflows, remittance growth, and a stable macroeconomic environment.

Foreign Exchange and Gold Holdings Lead the Growth

The largest contributor to the increase in NRB’s foreign assets was foreign exchange reserves, which climbed to Rs 2.58 trillion, a gain of Rs 167.7 billion (6.9%) over two months. This growth reflects robust remittance inflows and improved current account balance supported by a reduction in imports. Meanwhile, gold investments reached Rs 132.05 billion, expanding by 12%, as NRB strategically diversified its portfolio amid global economic uncertainty. The report also noted that SDR holdings and reserve positions with the IMF remained steady, indicating Nepal’s maintained engagement with international financial institutions.

Liabilities Stable, Net Foreign Assets Strengthen

On the liabilities side, the NRB recorded a marginal rise of 3.6%, with total foreign liabilities standing at Rs 42.54 billion, mainly due to SDR allocations. This limited increase compared to asset growth contributed to a significant rise in Net Foreign Assets (NFA), which improved by Rs 116.85 billion, reflecting the central bank’s stronger external buffer and reserve adequacy.
Additionally, government deposits nearly doubled, rising by 95.5% to Rs 255.6 billion, suggesting improved fiscal balance and stronger government cash management. This growth shows the government’s efficient mobilization of resources and its stable position within the financial system.

Moderate Contraction in Reserve Money

Despite the robust rise in foreign assets, reserve money (base money) fell by 5%, totaling Rs 1.09 trillion. The decline was largely due to a 15.2% drop in commercial bank deposits with NRB, reflecting reduced liquidity demand after major festivals. However, currency in circulation remained nearly stable, falling just 0.5%, indicating sufficient liquidity for economic transactions.
This controlled contraction is viewed positively as it supports monetary discipline while maintaining balance between liquidity and inflation management.

Capital and Reserve Strengthen

The NRB’s capital and reserve position rose sharply by 14.7%, reaching Rs 681.28 billion. This expansion demonstrates the central bank’s growing financial strength and capacity to absorb external shocks. Alongside this, other liabilities increased by 17.1%, primarily due to revaluation adjustments and balance sheet expansion.

Overall, the survey portrays a resilient and expanding central bank balance sheet, underpinned by robust foreign reserve accumulation and prudent liquidity management, signifying enhanced financial stability and macroeconomic confidence in Nepal’s economy.