Nepal Rastra Bank published daily exchange rate for Wednesday, as Nepali Rupees weakens to all time low against US dollar..
Wednesday, NRB determined exchange rate for 1 dollar to be Rs 126.64 which is the highest rate ever. As global uncertainities rise, dollar is strengthening day by day while Indian rupees continue to weaken with whom Nepali rupees is pegged with. NRB’s report show that Nrs has weaken by 3.71% compared to that of one year back. The report however considers data only upto Baishak but dollar has further gained almost 3 rupees.
The increasing demand for dollar as Russia-Ukraine war continues and investor opting to pull out their dollar investment is weakening indian rupees day by day. The stricter monetary policy by US Federal Reserve has further helped in absorption of dollar from market increasing demand more and more.
As value of dollar increases, Nepali people are bound to face more inflation as import gets costlier and costlier. Being heavily dependent on import, costlier dollar means we have to pay more of our curreny to buy goods. Our dollar reserve which is already diminishing is set to face more pressure as dollar continues to strengthen against nrs.
Increasing dollar, however is a good news for millions of Nepalis staying abroad. Remittance is expected to kick in as people send home more money with dollar strengthening. The balance of remittance and import is what, that maintains Nepal’s huge trade deficit and dollar reserve.
