Nepalese Rupee (NPR) – Currency and INR Peg
- Title
- Nepalese Rupee (NPR) – Currency and INR Peg
- Details
The Nepalese Rupee (NPR) is the official currency of Nepal, issued and regulated by Nepal Rastra Bank (NRB).
- Pegged Exchange Rate: The NPR has been pegged to the Indian Rupee (INR) at a fixed exchange rate of $1 \text{ INR} = 1.60 \text{ NPR}$ (or equivalently, $1 \text{ NPR} = 0.625 \text{ INR}$). For context,
1 Indian Rupee = 1.60 Nepalese Rupees. - History of the Peg: This fixed peg has been maintained since 1993 AD (2049 BS), providing critical exchange rate stability and facilitating cross-border trade.
- Monetary Policy Impact: Due to this peg, Nepal's domestic monetary policy is highly synchronized with the Reserve Bank of India's (RBI) monetary framework, and NRB must actively manage its foreign exchange reserves to defend the peg.
- Pegged Exchange Rate: The NPR has been pegged to the Indian Rupee (INR) at a fixed exchange rate of $1 \text{ INR} = 1.60 \text{ NPR}$ (or equivalently, $1 \text{ NPR} = 0.625 \text{ INR}$). For context,
- Category
- Monetary Policy
- Fiscal Year
- 2082
- Key Figure/Rate
- $1 \text{ INR} = 1.60 \text{ NPR}$