Nepal Rastra Bank Exchange Rate and Reason why NRS depends INR
Nepal Rastra Bank manages all banks in Nepal and provides daily Nepal exchange rate for foreign currency. Nepal rastra bank is dedicated on developing secure, healthy and efficient payment system in Nepal. It supervises banks and financial companies to maintain its stability. Nepal Rastra Bank is constantly dedicated for financial development of Nepal.
NRB was established in 1956 under the NRB act 1955. It has its central office in Baluwatar, Kathmandu and branches all over the Nation. NRB supervises and regulates all the banks and financial institutions of Nepal, thus is called the Bank of banks. The major objectives of NRB are to control inflation, reduce unemployment, maintain balance of payment stability, foreign exchange policy formulation and ensure quality financial services.
Nepal Rastra Bank Important Notice
- Nepal rastra bank requests all to send their money through bank or remittance. Hundi is illegal. So, do send through bank or remittance.
- Deposit saving amount in bank.
- National paper notes (currency notes) are our income. Lets use it wisely.
- Exchange foreign currency only from Nepal rastra bank authorized ex-changers. Buying selling foreign currency is illegal.
- Notices of “winning lottery” or “You have received money” in your sms or email may be fraud. So stay clever from being bankrupt.
- Lets discourage the unnecessary expenses. Lets make the habit of saving money. Saving money is only the way to revenue progress.
- If you are doing banking transactions, make a habit to learn terms and conditions, interest rates, loan rates and base rate of the bank.
Nepal rastra bank Nepal exchange rate
Nepal rastra bank provides daily Nepal exchange rate of foreign currencies. For getting exchange rate details, you need to log in to www.nrb.org.np. On the right most section, you will see Foreign Exchange Rates. This section provides the information about exchange rate. This Nepal exchange rate section is updated daily. Nepal rastra bank is only the governing body to manage Nepal exchange rate of Nepal.
Nepal Rastra Bank sets the currency exchange rate daily. The Exchange rate is updated and it changes daily. NRB sets all exchange rate for dollar- USD, AUD, SGD, GBP, INR.
If you are checking exchange rate of specific date, you can also do it. nrb.org.np provides service for knowing Nepal exchange rate of previous dates too. You can select your specific date on the drop down menu available on that page. You can get exchange rate of all currencies.
If you are abroad, you can send money when the exchange rate is higher. You will get the higher amount in Nepal. If your family members are in abroad, you can ask them to send money when the exchange rate is higher. It will be a great benefit for you.
Latest NRB exchange rate
One of the most important functions of NRB is to maintain exchange rates. Today one Nepali rupee equals 0.0093 US dollars. The value of Nepali currency is very low. Different factors are responsible behind this. Inflation rates, interest rates, export and import ratio, political scenario, government debt are some of the determinants of exchange rates.
A country with a consistently lower inflation rate exhibits a rising currency value, as its purchasing power increases relative to other currencies. Since inflation rate is very high in Nepal there is no doubt that our currency stays so much behind. Lower the interest rates higher will be the currency value . Increases in interest rates cause a country’s currency to appreciate because higher interest rates provide higher rates to lenders, thereby attracting more foreign capital, which causes a rise in exchange rates.
Similarly, a country’s current account reflects balance of trade and earnings on foreign investment. It consists of total number of transactions including its exports, imports, debt, etc. The current account shows the art of foreign exchange. A country with government debt is less likely to acquire foreign capital, leading to inflation. Foreign investors will sell their bonds in the open market if the market predicts government debt within a certain country. As a result, a decrease in the value of its exchange rate will follow.
Government debt is high in Nepal resulting in less exchange rates. Country’s political state and economic performance can affect its currency strength. A country with less risk for political issue is more attractive to foreign investor. Increase in foreign capital, in turn, leads to an appreciation in the value of its domestic currency. But of course looking at the political and economic condition of country there is no doubt that we have so less foreign direct investments and weak currency.
NRS depends upon INR
India has always been very close to Nepalese economy. Every other activity of India directly influences the economy of Nepal. Nepal is highly dependent on India for trade and other major activities. In such case, it is obvious that our exchange rates depend heavily on India. We import a lot from India and our export is very less. This has caused deficit Balance of trade which is one of the reason behind less foreign exchange rates . No just trade relations India has always interfered in the private matters of Nepal. This is also because we are weak in terms of economy, political stability and prosperity.
Nepali currency is not the most expensive in the world. This is because of our own pace of development. The world is reaching new heights and we are still struggling for fulfillment of basic needs.There are not many manufacturing industries. We heavily depend on neighboring countries for getting day to day basic supplies. The export is very less compared to import. With so many issues the currency is definitely one of the most less powerful. NRB has important role in managing exchange rates but when he determinants of exchange rates are overlooked by government there is no chance for increase in value of currency.