The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
In FY 2025/26, NRB’s capital and reserves rose sharply by 33.1 percent to Rs 681.3 billion, driven by foreign reserve gains, gold appreciation, and stable income growth. This expansion underlines a robust financial position, enabling NRB to strengthen monetary control, stabilize liquidity, and sustain Nepal’s external financial health.
In Mid-September 2025, Nepal’s Net Foreign Assets soared by Rs 697.5 billion (34.9%), driven by rising reserves and gold holdings, while Net Domestic Assets declined by Rs 596.7 billion (–59.5%) due to tight liquidity. The overall central bank balance sheet grew by 32.7%, showcasing Nepal’s improved external strength amid controlled domestic monetary conditions.
In Mid-September 2025, Nepal’s Net Foreign Assets surged by Rs 116.8 billion (4.6%) to Rs 2.69 trillion, showing strong foreign reserve accumulation. Meanwhile, Net Domestic Assets fell by Rs 175.2 billion (–12.9%), reflecting tighter domestic liquidity and reduced central bank credit expansion.
In Mid-September 2025, NRB’s capital and reserves rose by Rs 87.38 billion (14.7%), reaching Rs 681.3 billion, driven by valuation gains and strong foreign asset accumulation. This reflects a healthier central bank balance sheet, improved external stability, and greater resilience in Nepal’s financial system.
In Mid-September 2025, NRB data revealed that general government deposits increased by Rs 124.9 billion (95.5%) year-on-year, reaching Rs 255.6 billion. The surge reflects stronger fiscal consolidation and improved cash management but has also contributed to tightening liquidity in the financial system as funds remain parked with the central bank instead of circulating through commercial banks.
Nepal’s Broad Money Liquidity (M3) increased by 12.5% to Rs 7.96 trillion in mid-September 2025, fueled by strong foreign reserves growth, rising deposits, and moderate private-sector lending. The data highlight Nepal’s improving financial stability, robust remittance-backed liquidity, and NRB’s effective management of the monetary environment.
Nepal’s money supply (M1+) rose sharply by 31.9% to Rs 4.36 trillion, driven by growth in currency circulation, demand deposits, and savings. Meanwhile, time deposits fell 4.9% to Rs 3.51 trillion, as savers preferred liquidity over fixed-term deposits. This shift signifies enhanced liquidity and financial activity, backed by robust remittance inflows, expanding reserves, and steady credit demand.
