Nepal's Foreign Exchange Reserves Surge 45.6%, Enough to Cover 23 Months of Imports

Nepal's foreign exchange reserves have experienced a substantial increase, rising 45.6 percent year-on-year to Rs 3.897 trillion by the close of the last fiscal year. This marks a significant improvement from the Rs 2.678 trillion recorded at the end of fiscal year 2024/25. In US dollar terms, the country's reserves saw a 29.8 percent jump, reaching $25.31 billion compared to $19.50 billion a year prior.

The central bank, Nepal Rastra Bank, reported that these reserves are now sufficient to cover 23 months of merchandise imports and 19.6 months of merchandise and services imports, based on the consumption patterns of fiscal year 2025/26. This robust level of reserves provides a strong buffer against external economic shocks.

Breaking down the holdings, Nepal Rastra Bank itself holds the majority of the reserves, which increased by 43.8 percent to Rs 3.473 trillion. Foreign exchange reserves managed by banks and financial institutions also saw considerable growth, climbing 61.4 percent to Rs 424.48 billion. As of mid-July 2026, the Indian currency constituted 22.3 percent of Nepal's total foreign exchange reserves.

Furthermore, the reserves-to-GDP ratio has improved, with foreign exchange reserves equivalent to 63.8 percent of GDP at the end of fiscal year 2025/26. This ratio was 43.8 percent a year earlier. The country's net foreign asset position also strengthened, reaching Rs 1.817 trillion, up from a surplus of Rs 779.77 billion in the previous year.