Nepal’s foreign exchange reserves hit Rs3.2 trillion as investment stalls
Summary
Nepal’s foreign exchange reserves have reached Rs3.2 trillion, over half of its GDP, driven by high remittance inflows amid low investment and economic stagnation due to political instability and weak private sector confidence.
Key Points
- Nepal’s foreign exchange reserves surged to Rs3.20 trillion by mid-December 2025, exceeding half of its GDP.
- The economic growth is sluggish with weak investment and low domestic consumption despite high liquidity.
- Private sector confidence and investment are low due to political instability and poor governance.
- Remittance inflows have surged, but job creation remains low and economic activity has stalled.
