Nepal's gross foreign exchange reserves rise 45.6 pc to Rs 3,897.67bn in mid‑July 2026: NRB

KATHMANDU: Gross foreign exchange reserves of Nepal increased by 45.6% to Rs 3,897.67 billion in mid-July 2026 from Rs 2,677.68 billion in mid-July 2025, according to annual macroeconomic data released by Nepal Rastra Bank on Thursday. In US dollar terms, gross foreign exchange reserves grew by 29.8% to reach $25.31 billion in mid-July 2026, up from $19.50 billion recorded a year earlier.

Of the total reserves, foreign exchange held by Nepal Rastra Bank increased by 43.8% to Rs 3,473.19 billion in mid-July 2026, compared with Rs 2,414.64 billion in mid-July 2025. Reserves held by banks and financial institutions, excluding the central bank, grew by 61.4% to Rs 424.48 billion from Rs 263.04 billion in the same period of the previous year. The share of Indian currency in total foreign exchange reserves stood at 22.3% as of mid-July 2026.

Based on imports from Fiscal year 2025/26, the foreign exchange reserves of the banking sector are sufficient to cover prospective merchandise imports for 23 months, and combined merchandise and services imports for 19.6 months. The reserves-to-GDP ratio stood at 63.8% in mid-July 2026, up from 43.8% in mid-July 2025. Furthermore, the reserves-to-imports ratio increased to 163.4% from 128.1%, and the reserves-to-M2 ratio rose to 43.8% from 34.1% over the review period.