NRB’s Foreign Assets Surge 34.3% to Rs 2.74 Trillion – Strong Reserve Growth Drives Monetary Expansion

According to the NRB Central Bank Survey (Mid-September 2025), Nepal’s Net Foreign Assets (NFA) rose by Rs 697.5 billion, marking a 34.9% year-on-year increase, reaching Rs 2.69 trillion. This substantial growth highlights strong reserve accumulation, driven by rising remittance inflows, a narrowing trade deficit, and higher foreign exchange earnings from tourism and exports. The data shows that foreign exchange holdings and gold investments increased significantly, with foreign exchange reserves alone rising by Rs 653.4 billion (33.9%) and gold holdings surging by 55.1% compared to the previous year.

In contrast, Net Domestic Assets (NDA) contracted by Rs 596.7 billion (–59.5%), indicating a tightening of domestic liquidity and credit flows. The contraction reflects reduced monetary support from NRB and an increase in government deposits under the standing deposit facility, which jumped by Rs 434.8 billion (183.5%) over the year. This shows that while Nepal’s external financial position has strengthened, domestic liquidity remains constrained due to restrained credit expansion and government surplus accumulation.

The NRB’s total balance sheet expanded by Rs 702.6 billion (32.7%), underlining the strong contribution of foreign assets to overall growth. Additionally, reserve money increased by Rs 100.8 billion (10.1%), reflecting moderate liquidity expansion, while capital and reserves climbed sharply by 33.1%, reaching Rs 681.3 billion, signaling a stronger institutional position.