Foreign Exchange Rates Of Nepal (FOREX)

The foreign exchange rates for Nepal are provided by the Central Bank of Nepal, also known as Nepal Rastra Bank. The exchange rate for the Indian Rupee is pegged at NRs. 160. Today's forex rates for Nepal include a comprehensive array of currencies: the U.S. dollar (USD), euro (EUR), British pound sterling (GBP), Swiss franc (CHF), Australian dollar (AUD), Canadian dollar (CAD), Singapore dollar (SGD), Japanese yen (JPY) per 10 units, Chinese renminbi (CNY), Saudi riyal (SAR), Qatari riyal (QAR), Thai baht (THB), UAE dirham (AED), Malaysian ringgit (MYR), Korean won (KRW) per 100 units, Swedish krona (SEK), Danish krone (DKK), Hong Kong dollar (HKD), Kuwaiti dinar (KWD), and Bahraini dinar (BHD).

Currency Rates for Today

Foreign Exchange System in Nepal

The foreign exchange system in Nepal is managed by the Nepal Rastra Bank (NRB), which is the central bank of the country. Here are the key elements of the system:

1. Regulation and Supervision

Nepal Rastra Bank (NRB): As the central bank, NRB is responsible for regulating and supervising the foreign exchange market in Nepal. It issues guidelines and regulations to ensure the stability and integrity of the market.

2. Exchange Rate Regime

• Pegged Exchange Rate: Nepal operates a fixed exchange rate regime where the Nepalese Rupee (NPR) is pegged to the Indian Rupee (INR). The exchange rate is fixed at NPR 1.60 per INR 1. This peg helps maintain stability in the exchange rate and facilitates trade and investment between Nepal and India.
• Flexible Rates for Other Currencies: For currencies other than the Indian Rupee, Nepal follows a managed float exchange rate system. The exchange rates for these currencies are determined by the market forces of supply and demand, with periodic interventions by the NRB to prevent excessive volatility.

3. Foreign Exchange Transactions

• Authorized Dealers: Commercial banks and other authorized financial institutions are permitted to conduct foreign exchange transactions. They buy and sell foreign currencies, provide foreign currency accounts, and facilitate remittances and trade finance.
• Exchange Facilities: Foreign exchange facilities are available for both individuals and businesses. Individuals can purchase foreign currency for travel, education, medical treatment, and other purposes, subject to regulatory limits. Businesses can access foreign exchange for import and export transactions, foreign debt servicing, and other trade-related activities.

4. Remittances

• Significant Source of Foreign Exchange: Remittances from Nepalese working abroad are a major source of foreign exchange for the country. NRB has implemented policies to facilitate the inflow of remittances through formal banking channels.
• Remittance Services: Commercial banks and money transfer operators provide remittance services to facilitate the transfer of funds from overseas to Nepal.

5. Foreign Exchange Reserves

• Reserve Management: NRB manages the country's foreign exchange reserves, which are held to ensure the stability of the exchange rate, meet international payment obligations, and maintain confidence in the financial system.
• Composition of Reserves: The reserves typically consist of foreign currencies, gold, and Special Drawing Rights (SDRs) from the International Monetary Fund (IMF).

6. Foreign Exchange Controls

• Regulatory Measures: NRB implements various foreign exchange control measures to regulate the flow of foreign currency in and out of the country. These measures include limits on the amount of foreign currency individuals and businesses can hold and rules governing foreign investments and external borrowing.

Overall, Nepal's foreign exchange system is designed to ensure the stability of the Nepalese Rupee, facilitate international trade and remittances, and maintain adequate foreign exchange reserves to support the country's economic stability and growth.

References:
• https://www.nrb.org.np/