Nepali Rupee (NPR) is the official currency of Nepal, a landlocked South Asian country located between India and China.
The modern Nepalese rupee was introduced in 1932, replacing the silver mohar as the country's official currency.
Nepal Rastra Bank Nepal Rastra Bank is responsible for issuing and managing the Nepali Rupee.
Segments and denominations
The
Nepalese Rupee is subdivided into 100 smaller units called paisa.
The coins are available in denominations of 1, 5, 10, 25 and 50 paise and 1, 2, 5 and 10 Nepali rupees.
The banknotes are available in 5, 10, 20, 50, 100, 500 and 1000 Nepalese rupee denominations.
Exchange rate system
The exchange rate of the Nepalese rupee is pegged to the Indian rupee (INR), using a fixed exchange rate system.
Nepal Rastra Bank determines the exchange rate between Nepali Rupee and Indian Rupee and may intervene in the foreign exchange market to maintain this link.
Exchange rates with other currencies are determined by market forces and fluctuate based on changes in the value of the Indian Rupee.
Economy
Nepal’s economic development mainly relies on agriculture, service industry and tourism. Agriculture employs a large portion of the population and contributes to the country's GDP.
Tourism is a growing industry and Nepal is a popular destination for trekking, mountaineering, and cultural and spiritual tourism.
The country faces several economic challenges such as inadequate infrastructure, political instability, and vulnerability to natural disasters such as earthquakes and landslides.
Nepal is also one of the poorest countries in the world, with a large portion of the population living below the poverty line.
Challenges and prospects
Nepal’s economic challenges include heavy dependence on agriculture, lack of economic diversification, and inadequate infrastructure.
The country has been working to address these challenges through infrastructure investment, economic diversification, and improved governance and public services.
Nepal’s long-term economic prospects depend on its ability to continue to implement reforms, manage natural resources and diversify its economy.
Additionally, addressing issues such as poverty, food insecurity and environmental degradation are crucial to ensuring sustainable development.
Summary
To sum up, Nepali Rupee is the official currency of Nepal and its management is handled by Nepal Rastra Bank.
The currency is subdivided into paisas, and coins and banknotes are issued in various denominations.
In the economic development of Nepal, agriculture, service industry and tourism have made huge contributions.
The country operates a fixed exchange rate system pegged to the Indian rupee and faces economic challenges such as dependence on agriculture, inadequate infrastructure and vulnerability to natural disasters.
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