Foreign exchange reserves triple in five years
Summary
Nepal’s foreign exchange reserves have nearly tripled in five years to Rs 3.946 trillion, boosted by remittances, tourism earnings, foreign aid, loans and export income. The growing reserves have strengthened the country’s ability to finance imports and meet external debt obligations, though economists warn that deeper production and export growth is still needed.
Key Points
- Nepal’s foreign exchange reserves reached Rs 3.946 trillion by mid-August 2026, up from Rs 1.216 trillion in fiscal 2021/22.
- The increase has been driven mainly by remittances, tourism, foreign aid, loans, export income and restrained imports.
- Nepal Rastra Bank said the larger reserve stock improves import capacity, debt repayment ability and foreign exchange market stability.
- Experts caution that reserve growth alone is not enough unless Nepal also expands production, exports and domestic substitution.
