The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
Nepal’s import financing capacity has climbed to 20.4 months for goods and 16.6 months for goods + services, backed by rising reserves and remittance inflows — the highest level of external strength in years.
Nepal Rastra Bank’s foreign reserves crossed Rs. 2.5 trillion in mid-August 2025, a 4% monthly rise driven by strong remittances and a BoP surplus, marking the strongest external stability in years.
In 2025/26, Nepal’s foreign reserves hit Rs. 2.95 trillion, with 76.6% in convertible global currencies and 23.4% in INR, marking a steady shift toward India-linked reserves.
Nepal’s reserves surged to Rs. 2.95 trillion, covering 20.4 months of imports, thanks to remittances and BoP surplus. Yet, a large trade deficit poses long-term risks.
Other current transfers rose to USD 108 million in 2025/26, driven by foreign pensions, grants, and social-support inflows—providing a growing income cushion for Nepali households.
Nepal’s deficit in insurance and pension services stood at USD −7.3 million in the first month of FY 2025/26, driven by high reinsurance payments abroad and limited domestic capacity.
Nepal paid USD 42 million in external loan repayments in the first month of 2025/26, led by the government sector. The repayments, while healthy for debt sustainability, have added pressure on short-term reserves and liquidity.
Nepal recorded a USD +1.4 million surplus in financial-derivative transactions during FY 2025/26’s first month — a minor but positive sign of deeper financial integration and risk-management maturity.
