Kathmandu: Nepal’s foreign exchange reserves recorded a significant increase by the end of Baisakh in the current fiscal year 2025/26.
According to the Current Macroeconomic and Financial Situation Report published by the Nepal Rastra Bank, the country’s Gross foreign exchange reserves increased 38.3 percent to Rs.3704.55 billion in mid-May 2026 from Rs.2677.68 billion in mid-July 2025.
In US Dollar terms, the gross foreign exchange reserves increased 24.0 percent to 24.19 billion in mid-May 2026 from 19.50 billion in mid-July 2025.
Of the total foreign exchange reserves, the reserves held by NRB increased 36.6 percent to Rs.3298.38 billion in mid-May 2026 from Rs. 2414.64 billion in midJuly 2025. Reserves held banks and financial institutions (except NRB) increased 54.4 percent to Rs.406.17 billion in mid-May 2026 from Rs.263.04 billion in mid-July 2025. The share of Indian currency in total reserves stood at 20.6 percent in mid-May 2026.
Based on the imports of the ten months of 2025/26, the foreign exchange reserves of the banking sector are sufficient to cover the prospective merchandise imports of 22.6 months, and merchandise and services imports of 19.2 months. The ratio of reserves-to-GDP, reserves-to-imports and reserves-to-M2 stood at 60.7 percent, 159.7 percent, and 43.3 percent respectively in mid-May 2026. Such ratios were 43.8 percent, 128.1 percent, and 34.1 percent respectively in mid-July 2025.
