KATHMANDU, Sept 20: Nepal’s gross foreign exchange (forex) reserves increased 1.2 percent to Rs 3.946 trillion in mid-August from Rs 3,897.67 billion as of mid-July 2026.
In US dollar terms, the gross forex reserves increased 2.1 percent to $25.84 billion from $25.31 billion. The ‘Current Macroeconomic and Financial Situation of Nepal’ unveiled by Nepal Rastra Bank (NRB) shows that the foreign currency reserves will be sufficient to cover prospective merchandise imports for 21.8 months, and merchandise and services imports for 18.8 months.
Nepal’s foreign currency reserves increase 30.5 percent to Rs 3...
The increase in forex reserves is attributed to the rise in the current account surplus and overall balance of payments (BoP) surplus, backed by a substantial increase in remittance inflows. In the review month, remittance inflows surged 21.2 percent to Rs 215.05 billion ($1.40 billion).
The current account remained in surplus at Rs 94.59 billion, up from a year-on-year surplus of Rs 78.29 billion in the same month last year. Likewise, the BoP surplus increased to Rs 90.34 billion from Rs 89.30 billion.
Despite the favourable BoP position, Nepal’s merchandise trade and net services income remained largely in deficit. According to the NRB, the country’s trade deficit increased 24.9 percent to Rs 148.74 billion.
Although the country posted a 61.7 percent rise in export earnings to Rs 38.70 billion, the gain from exports was offset by soaring imports. During the review period, merchandise imports increased 31 percent to Rs 187.44 billion. Likewise, net services income remained in deficit at Rs 10.82 billion.
