Nepal’s forex reserves reach record high at Rs. 2,677 billion

Kathmandu, Aug. 25: Nepal’s foreign currency reserves surged to a record high in the fiscal year 2024/25, providing a strong buffer for the country’s external sector.

According to the annual macroeconomic and financial report published by Nepal Rastra Bank (NRB) on Sunday, the reserves reached Rs. 2,677.68 billion by mid-July 2025 — a 31.2 per cent increase from Rs. 2,041.10 billion recorded in mid-July 2024.

In the US dollar terms, the gross foreign exchange reserves increased 27.7 per cent to 19.50 billion in mid-July 2025 from 15.27 billion in 

mid-July 2024.

The increase in foreign exchange reserves is largely attributed to a substantial rise in remittance inflows, among other positive economic indicators.

With this surge, Nepal’s reserves are now sufficient to cover the import of goods for more than 18 months. 

Specifically, based on the imports of 2024/25, the reserves can cover merchandise imports for 18.2 months and both goods and services imports for 15.4 months — an indicator of strong external sector stability.

During the fiscal year 2024/25, imports increased by 13.3 per cent to Rs.1804.12 billion against a decline of 1.2 per cent a year ago. 

Similarly, exports increased by 81.8 per cent to Rs. 277.03 billion during the last fiscal year.

The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 43.8 per cent, 128.1 per cent, and 34.1 per cent respectively in mid-July 2025. 

Such ratios were 35.8 per cent, 108.6 per cent, and 29.3 per cent respectively in mid-July 2024.

Of the total foreign exchange reserves, the reserves held by NRB increased by 30.6 per cent to Rs. 2,414.64 billion in mid July 2025 from Rs. 1,848.55 billion in mid July 2024. 

Reserves held by banks and financial institutions (except NRB) increased by 36.6 per cent to Rs. 263.04 billion in mid-July 2025 from Rs. 192.55 billion in mid-July 2024. 

The share of Indian currency in total reserves stood at 23.1 per cent in mid-July 2025.

The robust growth in Nepal’s foreign currency reserves is seen as a positive sign for the country’s macroeconomic stability and its ability to manage external shocks in the near term.

Nepal receives remittance of 

Rs. 1,723 billion

Similarly, the country witnessed a significant surge in remittance inflows during the fiscal year 2024/25.

According to NRB, remittance inflows increased by 19.2 per cent to Rs. 1,723.27 billion during the review year compared to an increase of 16.5 per cent in the previous fiscal year. 

The remittance inflow received last year is the highest ever.

During a single month between mid-June to mid-July 2025, remittance inflows stood at Rs. 189.11 billion. In the same period previous fiscal year, such inflows were Rs. 117.78 billion.

In the US dollar terms, remittance inflows increased by 16.3 per cent to 12.64 billion in the review year compared to an increase of 14.5 per cent in the previous year.

Net secondary income (net transfer) reached Rs. 1874.30 billion in the review year compared to Rs. 1571.24 billion in previous year.

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The number of Nepali workers, both institutional and individual, taking first-time approval for foreign employment stood at 505,957 and taking approval for renew entry stood at 333,309. In the previous year, such numbers were 460,102 and 281,195 respectively.

BoP surplus reaches 

Rs. 594.5 billion

Similarly, balance of payments (BOP) remained at a surplus of Rs. 594.54 billion in the review year compared to a surplus of Rs. 502.49 billion in the previous year. In the US dollar terms, the BOP remained at a surplus of 4.37 billion in the review year compared to a surplus of 3.77 billion in the previous year.

Similarly, the current account remained at a surplus of Rs. 409.20 billion in the review year compared to a surplus of Rs. 221.71 billion in the previous year. 

In the US dollar terms, the current account registered a surplus of 3.01 billion in the review year against a surplus of 1.67 billion in the 

previous year. In the review year, net capital transfer amounted to Rs. 9.84 billion. In the same year of the previous year, such transfer amounted to Rs. 5.81 billion.

Similarly, in the review year, Rs. 12.02 billion foreign direct investment (equity only) was received. In the previous year, foreign direct investment inflow (equity only) amounted to Rs. 8.47 billion.