Reserve Assets More than Double: Currency Deposits Hit USD 654M

Nepal’s external sector continues to strengthen as foreign-exchange reserves more than doubled in the first month of fiscal year 2025/26, according to the latest Balance of Payments data released by Nepal Rastra Bank.

Total reserve assets reached USD 671 million, a sharp rise from USD 316 million recorded during the same period last year. The main driver of this growth was a massive build-up in currency and deposit holdings, which surged to USD 654 million compared to USD 318 million in the previous year.

Within the reserves, deposits maintained by the Nepal Rastra Bank (NRB) stood at USD 435.9 million, while deposit-taking corporations (mainly commercial banks) accounted for USD 218.2 million. This accumulation of reserves reflects improved remittance inflows, a stronger current account balance, and limited capital outflows.

Economists say the sharp rise in foreign assets provides a significant cushion for Nepal’s imports and external debt obligations, helping maintain currency stability amid global economic uncertainty. However, they caution that the sustainability of this build-up depends on the balance between rising imports and remittance-driven inflows.

The surge in reserve assets also indicates a positive financial account balance of USD 577 million, showing that Nepal is currently a net lender to the rest of the world.