Nepal’s forex reserves rise 1.2 percent to Rs 3.946 trillion

Kathmandu, September 20, 2026 — Nepal’s gross foreign exchange (forex) reserves increased 1.2 percent to Rs 3.946 trillion in mid-August 2026 from Rs 3,897.67 billion as of mid-July 2026.

In US dollar terms, gross forex reserves increased 2.1 percent to $25.84 billion from $25.31 billion.

According to the Current Macroeconomic and Financial Situation of Nepal published by Nepal Rastra Bank (NRB), the foreign currency reserves are sufficient to cover prospective merchandise imports for 21.8 months and merchandise and services imports for 18.8 months.

The increase in forex reserves was attributed to a rise in the current account surplus and overall balance of payments (BoP) surplus, backed by a substantial increase in remittance inflows. During 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, compared with 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 in deficit. According to the NRB, the country’s trade deficit increased 24.9 percent to Rs 148.74 billion.

Although export earnings increased 61.7 percent to Rs 38.70 billion, the rise in exports was offset by higher 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.