Reserves-to-Imports Ratio Jumps to 138% – Safe Buffer Against External Shocks

Nepal’s foreign exchange reserves have reached a critical milestone in 2025/26, with the reserves-to-imports ratio climbing to 138.3 percent, signaling one of the strongest external positions in South Asia. According to the latest data from Nepal Rastra Bank (NRB), this sharp improvement reflects rising foreign reserves, stable remittance inflows, and moderated import demand, which together have fortified the nation’s external stability.

As of mid-August 2025, Nepal’s gross foreign exchange reserves surged to Rs. 2.8 trillion, a 4.8% monthly rise. This expansion has extended the country’s import financing capacity to over 20 months for goods and 16.6 months for goods and services combined. Economists view this as a vital cushion, ensuring Nepal’s ability to absorb global oil price fluctuations, currency volatility, and other external shocks without immediate policy strain.

The improvement in the reserves-to-imports ratio indicates that Nepal has built a healthy macroeconomic safety net. However, experts caution that the strength of reserves is largely dependent on remittance inflows and import contraction, not on export earnings or industrial growth. For sustainable resilience, Nepal must enhance export competitiveness, attract foreign direct investment (FDI), and strengthen domestic production to reduce reliance on remittance-driven stability.