By Karuna Thapa
Kathmandu, March 8
The Nepalese rupee has a long history of devaluation. As the US dollar has strengthened, the Nepali rupee has weakened. The Nepal Rastra Bank fixed the US dollar purchasing rate at 122.84 paise and the selling rate at 123.44 paise on Tuesday.
To acquire one US dollar, you would now have to pay 123 rupees 44 paise. The US dollar has been gradually increasing in recent months.
The US economy is strengthening, according to Ramu Poudel, executive director of Nepal Rastra Bank’s foreign exchange department, and the current US-Russian war has had an influence on the US dollar. According to him, there has been a surge in worldwide demand for the dollar recently. Prices rise when demand is strong.
The exchange rate between the Nepalese currency and the Indian rupee is set. As a result, the Nepali rupee has been declining for some time as the Indian rupee has declined against the dollar.
Economists have warned that a stronger US dollar might harm Nepal’s economy. Foreign items become more expensive for Nepalis when the dollar rises in value.
India accounts for over 70% of Nepal’s commerce. Experts warn that even when the Indian rupee is inexpensive, the price might rise. However, there are certain advantages to the increasing dollar. Tourism revenue grows in tandem with the value of the foreign currency.
On the other side, it will assist Nepalis who have relocated for work in other countries. Many people transmit money earned overseas in Nepali rupees. When the value of the dollar rises, the quantity of money delivered to Nepal may rise as well.
