The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
Foreign liabilities decreased by Rs. 12.8 billion (−7.3%) in 2025/26, easing Nepal’s external debt pressure and contributing to stronger foreign reserves and currency stability.
Private sector credit rose by Rs. 400 billion (7.7%) in August 2025 — signaling renewed business activity, but raising questions about the quality and direction of credit growth.
M1+ growth of 32.8% in August 2025 reflects rising liquidity led by savings and call deposits, but the sustainability of this growth depends on how effectively the liquidity is used to stimulate Nepal’s productive economy.
Broad Money (M2) grew 12.5% year-on-year in August 2025, signaling strong liquidity expansion supported by higher savings and deposits, but time deposits declined.
Net Domestic Assets rose by Rs. 110B in August 2025, supported by strong private sector credit growth, even as government borrowing declined.
Nepal’s foreign assets surged 37% to Rs. 2.79 trillion in August 2025, driven by remittances, reserve accumulation, and reduced external liabilities, offering a strong cushion for macroeconomic stability.
Nepal’s monetary landscape in 2025 shows rising foreign assets and deposits but contracting domestic credit and money supply, reflecting a liquidity-constrained yet externally strong economy.
Nepal’s saving and call deposits rose by Rs. 77 billion (+2.4%) in August 2025, helping to stabilize banking liquidity despite falling demand deposits.
Nepal’s demand deposits slumped by Rs. 114 billion (−22.8%) in a month, highlighting severe liquidity tightening as depositors withdraw cash and shift toward other instruments.
Nepal’s domestic credit fell by Rs. 108 billion in August 2025 — led by reduced government borrowing and lower interbank credit — even as private sector lending showed mild recovery.