
The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.

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.

Nepal’s broad money (M3) increased by 0.4%, reaching Rs 7.95 trillion in mid-September 2025. The rise was largely driven by a 5.8% growth in net foreign assets and an increase in saving deposits, while domestic credit growth remained contained. The data reflect a stable monetary environment supported by rising reserves, strong remittance inflows, and effective liquidity management by NRB.

The money multiplier (M2) expanded to 7.16 in mid-September 2025, indicating improved liquidity efficiency within Nepal’s banking system. While broad money rose by 0.3 percent, the increase was driven by strong foreign inflows and rising deposits rather than rapid credit growth—signaling a stable, well-balanced monetary environment under NRB’s cautious policy framework.

The NRB Monetary Survey (Mid-September 2025) shows that private sector credit increased by 1.6% (Rs 87.7 billion), while government deposits surged by nearly 96% (Rs 255.6 billion). The contrasting trends highlight modest credit expansion amid strong fiscal cash accumulation. Despite slower domestic liquidity growth, Nepal’s external sector remains robust, supporting overall monetary stability.