Kathmandu’s central bank has boosted foreign exchange reserves to a record 4.07 trillion rupees, a 4.3% rise from the previous quarter. This jump means the country can cover 20.9 months of merchandise imports, giving it a robust buffer against global market swings.
At mid‑September 2023, reserves reached 40.65 billion rupees, up 4.3% from 38.97 billion rupees a year earlier. In the banking sector this increase was 7.2%, bringing holdings to 45.51 billion rupees.
The Nepal Rastra Bank reported the 4.3% rise that lifted overall reserves to 4.07 trillion rupees. The central bank’s activities have strengthened the country’s foreign‑exchange positions.
The higher reserves provide a cushion against currency fluctuations, inflation and help attract foreign investment.
Financial institutions’ reserves grew by 7.2% to 45.51 billion rupees, reflecting a strengthening domestic financial environment.
The reserve mix includes a substantial share of Indian rupees, which helps support trade and finances. With reserves covering nearly 21 months of imports, Nepal remains well‑positioned to meet its import needs without stress.
The higher reserves provide a cushion against currency fluctuations, inflation and help attract foreign investment. They also support local businesses by enabling smoother imports of goods and machinery.
In sum, Nepal’s foreign exchange reserves have risen sharply, granting the country a strong shield that can back almost 21 months of import demand. The 4.3% rise to 4.07 trillion rupees marks a significant step toward greater economic resilience.
1. Reserves increased 4.3% to 40.65 billion rupees in mid‑2023 versus 38.97 billion rupees in mid‑2022. 2. Reserves are now 4.07 trillion rupees, a 4.3% rise from the previous quarter, sufficient for 20.9 months of merchandise imports. 3. Banking‑sector reserves rose 7.2% to 45.51 billion rupees.
Officials note that the rise strengthens the country's import coverage.