Economic Instability and Capital Flight Risk in Nepal - Ratopati
Economic Instability and Capital Flight Risk in Nepal - Ratopati
Source: Ratopati
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DW NOTE
Nepal's foreign exchange reserves have fallen to $9.4 billion, covering just 6.8 months of imports — down from 10.4 months in 2024. The country runs a trade deficit equal to 31% of GDP while remittances fund 23% of national income. With the Strait of Hormuz closed and oil at $95.70, import costs are spiking into an economy that was already haemorrhaging dollars. Capital flight isn't a risk; it's arithmetic.