One of the defining features of Nepal’s foreign exchange system is the fixed exchange rate peg between the Nepalese Rupee (NPR) and the Indian Rupee (INR). Under this arrangement, the NPR is pegged at a constant rate to the INR, creating a stable framework for cross-border trade, investment, and remittance flows.

Given Nepal’s close economic ties with India, the peg helps minimize exchange rate risk for businesses, importers, and exporters. It also simplifies trade settlement and reduces uncertainty in pricing for goods and services moving between the two countries.

However, while the fixed peg promotes stability, it limits Nepal’s ability to pursue an independent monetary policy. Domestic interest rates and liquidity conditions must often align with developments in the Indian economy, reducing policy flexibility during periods of economic stress.

Historical foreign exchange data provides essential context for understanding present-day exchange rates. Rather than viewing currency movements as isolated events, long-term data reveals patterns shaped by economic policy, global market conditions, and structural changes in the economy.

For researchers, businesses, and policymakers, historical forex trends help assess currency stability, evaluate the impact of policy decisions, and identify long-term risks and opportunities. Such insights support informed financial planning, forecasting, and evidence-based decision-making.