Monday Dec 5, 2022
Monday Dec 5, 2022

Risk of Nepal's trade deficit increases


Nepalnews
2022 Sep 27, 11:06, Kathmandu
Photo Description: Nepalese Rupees Photo: NepalNews

As the value of the American dollar continues to raise, the value of Nepalese rupee (NRP) has weakened. As per the US central bank, the Federal Reserve (Fed), increased the interest rate, making the value of NRP the weakest in the history.

Last Friday, the price of the dollar increased, and on Sunday, the exchange rate (selling rate) of one dollar reached 129 rupees and 89 paise. On the same day, the purchase price fixed by Nepal Rastra Bank was 129 rupees 29 paise.

In addition to this, former executive director of Nepal Rastra Bank and economist Nar Bahadur Thapa says that the European economy has weakened due to the lack of easy supply of oil and gas during to the Russia-Ukraine war.

 Thapa adds that if the value of the dollar continues to increase, there is a risk that the trade deficit will increase further due to the increase in imports in NRP. In addition to this, he argues that the increase in the value of the dollar will put more pressure on inflation.

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American dollar Nepalese rupee US central bank Nepal Rastra Bank Nar Bahadur Thapa Federal Reserve
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