?Kathmandu, February 2, 2026 — Nepal’s foreign exchange reserves are surging, providing a much-needed boost to the country’s economic confidence. In the first half of the current fiscal year, reserves reached nearly three times the central bank’s import coverage target, far exceeding expectations.
?According to Nepal Rastra Bank (NRB), the country held NPR 3,242.45 billion in reserves by the end of Poush, up from NPR 2,677.68 billion at the end of Ashad 2082. This represents a 21.1 percent jump in just six months. In US dollar terms, reserves rose from approximately USD 19.5 billion to USD 22.47 billion, marking a 15.2 percent increase.
?Much of this growth originates within the formal banking system. Nepal Rastra Bank alone holds NPR 2,884.08 billion, while commercial banks and other financial institutions contribute NPR 358.37 billion.
?Trade ties with India also play a pivotal role. With over two-thirds of Nepal’s trade conducted across the border, the share of Indian currency in total reserves has reached 22.3 percent. This highlights both Nepal’s trade dependence and the strategic composition of its foreign holdings.
?Economists note that rising reserves are more than just favorable figures; they serve as a lifeline for the economy. Robust reserves facilitate easier imports, stabilize the rupee against global currency fluctuations, and provide a cushion against unexpected financial shocks. “Strong reserves don’t just support daily trade—they give the country room to breathe in times of crisis,” explained a senior economist.
?For policymakers and citizens alike, this healthy growth in foreign reserves is a reassuring sign that Nepal’s financial system is in a strong position, prepared to handle future challenges.
