U.S. Dollar Records All-Time High Against Nepalese Currency: Import Price Surges and Remittance Gains

The US dollar has recently reached its highest value, hitting a new record of Rs. 133.68 last Wednesday and further increasing today. According to Nepal Rastra Bank's statistics on this Sunday, the current rate is Rs. 133.70, reflecting a 2-paisa increase from the previous record. This means that 1 US dollar now requires 133 rupees 70 paisa for exchange.

The depreciation of the Indian rupees against the US dollar has contributed to the weakening of the Nepali rupees. Nepal maintains a fixed exchange rate with India, and when the Indian currency weakens, it has a ripple effect on the Nepalese rupees as well.

The rise in the value of the dollar has repercussions, making imports more expensive. Since imports are transacted in dollars, a stronger dollar leads to higher expenditure. Additionally, the burden of state loans from foreign donor agencies is also set to increase.

While a robust dollar may benefit the tourism sector, exporters, and those sending remittances, experts argue that the disadvantages outweigh the advantages due to the substantial share of imports.