Nepal’s Foreign Assets Surge 37% to Rs. 2.79 Trillion in August 2025

Nepal’s external financial position has strengthened significantly, with net foreign assets (NFA) surging by 37% year-on-year to Rs. 2.79 trillion in mid-August 2025, according to the Monetary Survey published by Nepal Rastra Bank. This sharp increase of Rs. 752 billion compared to August 2024 highlights the resilience of remittance inflows, robust foreign exchange reserves, and declining foreign liabilities.

The data shows that total foreign assets reached Rs. 2.95 trillion, an increase of 34.1%, while foreign liabilities fell slightly by 0.8% to Rs. 161 billion. Within liabilities, deposits rose by 11.7% (Rs. 8.8 billion), whereas “other liabilities” decreased by 11.6% (Rs. 10.1 billion), indicating that Nepal is reducing external borrowing pressure while maintaining stronger cash buffers.

The boost in foreign reserves is closely tied to record-high remittance inflows, which crossed USD 1.26 billion in a single month, and steady inflows from tourism recovery and service exports, especially ICT services. This strong external cushion now provides over 20 months of import cover, reinforcing Nepal’s macroeconomic stability at a time when global uncertainties remain high.

Analysts argue that the increase in reserves is a positive shield against external shocks, such as volatile oil prices or disruptions in global trade. However, they caution that without parallel growth in productive investments and exports, reliance on remittances could make the gains fragile in the long run.