Financial inflation, credit crunch, and the import-based economy of Nepal are struggling hard to survive in the current currency market around south Asia.
Its 90 percent of business is with India and the Indian market is slowing down in recent years, thus the effect is clearly imposed on the Nepali economy too.
According to Nepal Rastra Bank, the selling rate of one American dollar reached 129 rupees and 89 paise on Sunday. This is the highest ever in history.
With the increase in the demand for US dollars in the world market, the price has gone up. The impact of the increase in the worth of the dollar has also affected the Indian rupee along with Nepal.
The Nepali currency has a fixed exchange rate with the Indian rupee. Due to the fixed exchange rate for almost 25 years, Nepal’s current inflation went worse even though Nepal’s GDP and other indexes have very impressive gains in the market says Nepal’s central bank.
Nepal Rastra Bank has said to pay 129 rupees 29 paise for buying one US dollar and 129 rupees 89 paise for selling it. It may rise if the current scenario continues with the shortage of US dollars in the market worldwide.