Governor Paudel Proposes Establishment of Sovereign Wealth Fund to Optimize Foreign Currency Reserves

Dr. Bishwanath Paudel, Governor of Nepal Rastra Bank, has announced efforts to establish a Sovereign Wealth Fund aimed at better utilization of Nepal’s foreign currency reserves. Despite having foreign currency reserves sufficient to cover more than 18 months of imports, the returns on these reserves have been approximately only 4 percent. Governor Paudel stated, “We have enough foreign currency reserves to cover 7 months of imports,” and emphasized that the remaining foreign currency will be invested in economic development. This statement was made on 17th Jestha in Kathmandu.

Governor Paudel shared these insights during a press conference following the budget presentation organized by the Ministry of Finance on Sunday. He explained, “While we hold foreign currency reserves adequate for over 18 months of imports, the current return is only around 4 percent.” Consequently, he clarified that the idea of a Sovereign Wealth Fund has been conceived to channel part of these foreign currency reserves into economic development investments.