Nepal's Forex Reserves Reach Rs 3.946 Trillion, Covering 21.8 Months of Imports
Nepal's gross foreign exchange reserves rose 1.2% to Rs 3.946 trillion in mid-August, sufficient to finance 21.8 months of merchandise imports. The increase was driven by a surge in remittance inflows and a higher current account surplus, despite a widening trade deficit.
KATHMANDU, Sept 20 — Nepal's gross foreign exchange reserves increased 1.2 percent to Rs 3.946 trillion in mid-August, up from Rs 3,897.67 billion in mid-July 2026, according to the Nepal Rastra Bank (NRB).
In US dollar terms, the reserves rose 2.1 percent to $25.84 billion from $25.31 billion. The NRB's 'Current Macroeconomic and Financial Situation of Nepal' report indicates that the reserves are sufficient to cover 21.8 months of prospective merchandise imports and 18.8 months of merchandise and services imports.
The buildup in reserves is attributed to a higher current account surplus and an overall balance of payments (BoP) surplus, supported by strong remittance inflows. In the review month, remittances surged 21.2 percent to Rs 215.05 billion ($1.40 billion).
The current account surplus stood at Rs 94.59 billion, up from Rs 78.29 billion in the same month last year. Similarly, the BoP surplus increased to Rs 90.34 billion from Rs 89.30 billion.
Despite the favourable external position, Nepal's merchandise trade and net services income remained in deficit. The trade deficit widened 24.9 percent to Rs 148.74 billion, as imports soared 31 percent to Rs 187.44 billion, outweighing a 61.7 percent rise in export earnings to Rs 38.70 billion. Net services income also remained negative at Rs 10.82 billion.