#NepalRastraBank #GoldReserves
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By Sandeep Chaudhary

Gold Reserves of NRB Jump 42.8%: Nepal’s Central Bank Strengthens External Assets”

Gold Reserves of NRB Jump 42.8%: Nepal’s Central Bank Strengthens External Assets”

Nepal Rastra Bank (NRB) has reported a significant 42.8% year-on-year rise in its gold reserves, reflecting a strategic effort to strengthen the country’s foreign asset composition amid global uncertainty and volatile exchange markets. As of mid-August 2025, NRB’s gold holdings reached Rs. 120.78 billion, up from Rs. 84.55 billion in the same period last year. This marks one of the sharpest annual increases in gold investment by Nepal’s central bank in recent years.

According to the Central Bank Survey, gold now forms a growing share of NRB’s total foreign assets, which stand at Rs. 2.65 trillion — a 33.3% increase from last year. Analysts say that the rise in gold reserves reflects NRB’s attempt to diversify its reserve portfolio away from currencies like the US dollar and Euro, which remain exposed to global interest rate shifts and inflationary risks.

The central bank’s decision to increase gold holdings comes at a time when international gold prices have been rising steadily due to global monetary tightening and geopolitical tensions. By expanding its gold reserves, NRB aims to enhance the stability and liquidity of its overall foreign reserve assets. Gold’s non-correlation with currency fluctuations also serves as a safe hedge against potential foreign exchange shocks.

However, economists warn that while gold provides long-term value security, it does not generate regular income like foreign currency deposits or sovereign bonds. Hence, a balance between gold accumulation and active reserve management remains essential.

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