The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
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.
Nepal’s foreign exchange reserves surpassed Rs. 2.95 trillion, with import cover exceeding 20 months — signaling strong external stability and renewed confidence in the rupee.
Private sector credit increased by Rs. 12.6 billion (0.2%) in August 2025, mainly led by trade and service sectors, even as liquidity remained tight and domestic assets declined sharply.
Nepal’s Net Domestic Assets fell by Rs. 147 billion in August 2025, mainly due to higher government deposits and weaker credit expansion. This points to mounting liquidity stress in the domestic economy.
