The US Dollar has soared to unprecedented levels against the Nepali rupee, reaching a record high, according to Nepal Rastra Bank (NRB).
According to NRB, on Wednesday, the buying rate of the US dollar stands at Rs 133.8 and the selling rate stands at Rs 133.68. The rate of dollar exchange has set a new record. According to the NRB, this is the highest rate ever set for exchange of US dollars in Nepal.
Earlier, on November 11, the price of the dollar reached Rs 133.65. When the exchange rate of the dollar is high, remittances from abroad benefit. However, since Nepal’s economy is based on imports, there is a loss because the dollar has to be paid while importing goods.
The nation’s economy benefits from the strengthening of the dollar in terms of remittance income, tourism sector revenue, and export trade. However, when imports are higher than exports in Nepal’s foreign trade, the payment is in dollars which leads to an increase in the trade deficit. This will negatively affect the exchange rate and foreign exchange reserves.
Similarly, as soon as the price of the dollar increases, the price of imported foreign goods rises, the price of fuel may increase, and Nepal’s foreign debt and interest will increase with the increase in the price of the dollar.
