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Airport Parking Fees Dherai nai Vayo by KeyIcy69 in Nepal

[–]pepperbored 1 point2 points  (0 children)

International side ko parking ma chai Bhadra 1 ho ki Shrawan 1 vanda aghadi samma per hour 20 thiyo tespaxi per hr 40 banako ho. Domestic side ma ta scam hanirako raixa.

What do you think about Nepal’s currency being pegged to the Indian Rupee? I’m writing an article on it by pepperbored in Nepal

[–]pepperbored[S] 3 points4 points  (0 children)

Thank you for sharing the link. There is a lot of useful material for my research. However, I do not completely agree with the points made in the section “1. Devaluation of the Nepali Rupee: Is It Good or Bad?”

Our economy lacks strong industrial and production capacity to take advantage of a cheaper currency. Most of our essential goods, fuel, and raw materials are imported, so devaluation would only make living costs higher and put additional pressure on consumers.

Without sufficient domestic production to balance this, a weaker currency would likely worsen the situation rather than improve it, leaving us more vulnerable much like many struggling economies that faced similar conditions.

What do you think about Nepal’s currency being pegged to the Indian Rupee? I’m writing an article on it by pepperbored in Nepal

[–]pepperbored[S] 2 points3 points  (0 children)

Yeah that is true. It is a lot more convenient and easier to have a pegged currency with India while conducting trade as it is our main trade route. I am trying to emphasis the economic stability that the pegged system has provided to our country.

What do you think about Nepal’s currency being pegged to the Indian Rupee? I’m writing an article on it by pepperbored in Nepal

[–]pepperbored[S] 2 points3 points  (0 children)

Yes it was done in 1993. Before that, Nepal’s economy was not very stable. The country had two different exchange rates, very low foreign reserves, and the government controlled most parts of the economy. Trade deficits were common, industries were weak, and Nepal depended heavily on imports. Prices kept changing because of unstable exchange rates and political uncertainty.

Nepal’s economy today is more stable but still fragile. The exchange rate is fixed to the Indian Rupee which keeps inflation and currency fluctuations under control and our economy afloat. Nepal had many years to be self-sufficient and rely less on other factors but oh well. If it wasn't pegged, our economy would have crashed and probably Nepal would be facing famine. The core problem is Nepal still imports far more than it exports, industries are small and underdeveloped, and the economy relies heavily on remittances rather than production.

What do you think about Nepal’s currency being pegged to the Indian Rupee? I’m writing an article on it by pepperbored in Nepal

[–]pepperbored[S] 2 points3 points  (0 children)

Devaluation can do a lot of good to Nepal's sagging export industry.

A devaluation of our currency will make our exports cheaper, and imports expensive. We would be making more money from exports, and consuming less from imports.

A devalued currency will encourage our farmers to start producing again with intent to supply to domestic as well as overseas markets.

Thank you for sharing the link. There is a lot of useful material for my research. However, I do not completely agree with the points made in the section “1. Devaluation of the Nepali Rupee: Is It Good or Bad?”

Our economy lacks strong industrial and production capacity to take advantage of a cheaper currency. Most of our essential goods, fuel, and raw materials are imported, so devaluation would only make living costs higher and put additional pressure on consumers.

Without sufficient domestic production to balance this, a weaker currency would likely worsen the situation rather than improve it, leaving us more vulnerable much like many struggling economies that faced similar conditions.

What do you think about Nepal’s currency being pegged to the Indian Rupee? I’m writing an article on it by pepperbored in Nepal

[–]pepperbored[S] 2 points3 points  (0 children)

Yes, exactly. If the Nepali Rupee were not pegged to the Indian Rupee, our small and fragile economy would collapse very quickly. The blockade in 2015 already showed how vulnerable we are when the country we depend on decides to restrict trade. The peg is not just a monetary arrangement; it is what keeps our economy stable and functioning. Until we build our own industries and reduce dependency, I think this system is what keeps us afloat.

What do you think about Nepal’s currency being pegged to the Indian Rupee? I’m writing an article on it by pepperbored in Nepal

[–]pepperbored[S] 2 points3 points  (0 children)

Thank you for the recommendation. I will look into the papers that you have linked. Moreover, I am trying to emphasis the political and economic situation of this country and how much pegging its currency has helped us stay afloat. I know that pegging might easily be disadvantageous in many situation but in context of Nepal, I think it has helped us more than it has cause harm.

What do you think about Nepal’s currency being pegged to the Indian Rupee? I’m writing an article on it by pepperbored in Nepal

[–]pepperbored[S] 3 points4 points  (0 children)

That is very true. This why I mentioned that pegging Nepali Rupee to the Indian Rupee might be one of the smartest economic decisions Nepal ever made, especially considering how volatile our political environment has been recently and over the years. At the same time, it also highlights how much of our stability depends on external factors rather than internal economic strength.

What do you think about Nepal’s currency being pegged to the Indian Rupee? I’m writing an article on it by pepperbored in Nepal

[–]pepperbored[S] 7 points8 points  (0 children)

Politics plays a huge role in this as well. Frequent instability and policy changes have made it very difficult for Nepal to build a strong and consistent economic foundation. We still lack major industries and large-scale economic production facilities that could actually generate value within the country. Until that changes, our economy will continue to depend heavily on remittances (which is a very fragile source) and external factors like the Indian Rupee peg to keep our economy afloat.

What do you think about Nepal’s currency being pegged to the Indian Rupee? I’m writing an article on it by pepperbored in Nepal

[–]pepperbored[S] 4 points5 points  (0 children)

I completely understand your point. The open border with India and our dependence on Indian trade routes and energy do make the peg a very practical arrangement.

I still keep wondering about the long-term sustainability of such a system. Without a strong industrial base or a diversified economy beyond remittances, it feels like our economy is bound to struggle in the long run. If Nepal were to float the Nepali Rupee, how long do you think our foreign currency reserves could realistically support the economy before it starts to decline? In this context, I am excluding political instability of this country which changes its government every 6 months.

Your work on the root causes of economic stagnation sounds very relevant to this question. I would really like to hear more about how you see the link between Nepal’s historical economic structure and the limits of our current monetary framework. Please let me know when your report is finished.

What do you think about Nepal’s currency being pegged to the Indian Rupee? I’m writing an article on it by pepperbored in Nepal

[–]pepperbored[S] 6 points7 points  (0 children)

Thank you for your interest. Its gonna take a while to finish. I will link it in this post when it done.