Nepal’s Net Foreign Assets Increase by Rs 116.8 Billion While Domestic Assets Contract – NRB Survey 2025/26

According to the NRB Central Bank Survey (Mid-September 2025), Nepal’s Net Foreign Assets (NFA) rose sharply by Rs 116.86 billion, reaching Rs 2.69 trillion, reflecting a 4.6% increase compared to mid-July 2025. This surge was primarily driven by higher foreign exchange reserves and an improvement in the country’s external position. The increase in reserves was supported by rising remittance inflows, moderate imports, and a stable balance of payments scenario, reinforcing Nepal’s foreign liquidity strength.

However, in contrast to the foreign asset buildup, Net Domestic Assets (NDA) continued to contract, declining by Rs 175.16 billion (–12.9%). The contraction in domestic assets highlights tighter liquidity within the domestic economy, primarily influenced by reduced central bank lending to financial institutions, increased government deposits, and lower private sector claims. This trend indicates NRB’s ongoing efforts to manage inflation and maintain monetary discipline by controlling domestic credit expansion.

At the same time, other items (net) rose by Rs 50.28 billion (4%), showing balance sheet adjustments and valuation changes. Overall, the data suggests that while Nepal’s external financial position has strengthened, the domestic monetary environment remains tight, balancing external stability with internal control.