Kathmandu – Nepal's gross foreign exchange reserves witnessed a notable increase of 4.8 percent in mid-August 2025, reaching Rs. 2806.04 billion, up from Rs. 2677.68 billion in mid-July 2025, according to the latest data released by the Nepal Rastra Bank (NRB).

In US dollar terms, the reserves rose by 2.7 percent, from USD 19.50 billion to USD 20.03 billion over the same period.

Breakdown of Reserves

The increase was largely driven by a 4.0 percent rise in the reserves held by the Nepal Rastra Bank, which climbed to Rs. 2511.45 billion in mid-August from Rs. 2414.64 billion a month earlier.

Similarly, reserves held by banks and financial institutions (excluding NRB) rose significantly by 12.0 percent, reaching Rs. 294.58 billion, up from Rs. 263.04 billion in mid-July.

Indian Currency Share

Indian currency continued to play a significant role in Nepal’s reserve composition, accounting for 23.4 percent of the total foreign exchange reserves as of mid-August 2025.

Implications

The increase in foreign exchange reserves signals improved external sector stability and provides a stronger buffer for imports and foreign debt obligations. This rise comes amid stable remittance inflows and improved balance of payments conditions.