In current situation the value of
the US dollar is increasing with the exchange rate of Rs 83.91 in December. The
exchange rate of the dollar, a month ago was Rs 82.7819. So that Nepali
currency lost over seven % against the US dollar. The increasing rate of US
dollar does the fall on the value of the NPR. The NPR and the INR are directly
and solely related since these two currencies are pegged. The investors are
using dollar rather than euro as the safer currency.
The Upward of US dollar in india
lower the price of the INR value, so that has directly affects on the Nepalese
economy. The increase in US dollar effects to our exports will benefit but on
the other hands the imports of the Nepal will more expensive. So that the
exports like ( Pasmina , Handicraft, Galaicha, etc) will get beneficial but the
Imports like(cars, bike, petroleum, etc) will be more expensive. In the context
of Nepal there is more imports than exports that’s why the economy have
depreciative trade. And the increase of the US dollar rate makes the Nepalese
economy in more loss.
This also effects on the market too
even the cheap Chinese goods will be more expensive than its previous price.
The many of manufacturers imports raw materials that also make the high price
of the goods that goes on the market. During the fiscal year, Nepal’s Imports
from India stood at Rs 261 billion and at Rs 133.27 billion from third
countries.
The INR peg is still at the golden
NPR 160 and the 2/3 of the Nepal’s imports from india is also being trade in
INR. This import includes the petroleum from India and India imports approx 75%
of its own petroleum requirement. So that the increased price will be
transferred to Nepal while importing.
The US
dollar also affects on the trade on gold too. Trading of gold is done in US Dollar when the US
dollar goes up it means that buying dollar has become more expensive so gold
goes down when the US dollar goes up and vice versa.
There is the only beneficial part of
the increased of US dollar, that the increase value of the remittance caused
only the appreciation.
Nepal is a third world country, the
increase in US dollar depreciate the economy in loss. The exchange rate is
increasing day by day so that the economy is going down and down. The NPR has
been less valued currency. Country should focus to make valued it.
