Money in Nepal is a bit of a head-scratcher lately. If you’re holding a crisp greenback and looking at the official boards in Kathmandu, you might be surprised. As of mid-January 2026, US dollar 1 in Nepal is sitting right around 144.42 Nepali Rupees (NPR).
That is a lot of rupees for a single dollar.
Seriously. Just a couple of years ago, we were hovering in the 130s. Now, we’re knocking on the door of 145. If you're a traveler, you're probably grinning. If you're a local buying imported fuel or electronics, your wallet is likely feeling the pinch. But there is a massive paradox happening in the Nepali economy right now that most people—and even some news outlets—are completely missing.
The Weird Paradox of the 144 Rupee Dollar
Usually, when a country's currency devalues this much, it's because they're broke. You’d expect to see empty vaults and a desperate central bank.
Nepal is doing the exact opposite.
Foreign exchange reserves at the Nepal Rastra Bank (NRB) have actually surged to an all-time high. We are talking about roughly $20.41 billion in the coffers. That’s enough to cover more than a year’s worth of imports. It’s a massive safety net. So why is the rupee still so weak against the dollar?
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The answer isn't actually in Kathmandu. It’s in New Delhi.
The Nepali Rupee is "pegged" to the Indian Rupee (INR) at a fixed rate of 1.60. Basically, for every 100 Indian Rupees, you get 160 Nepali Rupees. This peg hasn't changed since 1993. Because of this "marriage" between the two currencies, when the Indian Rupee slides against the US Dollar due to global oil prices or US Federal Reserve interest rates, the Nepali Rupee is dragged down with it. It doesn't matter how many billions the NRB has in the bank; if the INR drops, the NPR drops.
What Can You Actually Buy for US Dollar 1 in Nepal?
Forget the charts for a second. Let's talk about the street. In the tourist hubs of Thamel or Lakeside, that one dollar (roughly 144 NPR) still goes a surprisingly long way, though inflation is trying its best to eat those gains.
- The Tea Test: You can get about three cups of milk tea (chiya) at a local roadside stall. If you’re at a fancy cafe, you might not even get one.
- The Street Food Factor: A plate of veg momos (steamed dumplings) in a local "hole-in-the-wall" spot usually costs between 120 and 150 NPR. So, one dollar is basically one lunch.
- Transport: You can hop on a local public bus and travel across half of Kathmandu for about 25-30 NPR. Your dollar pays for four or five trips.
- The Water Bottle: A standard 1-liter bottle of mineral water is 25 NPR. You can buy five bottles and still have change for a piece of gum.
It sounds like a bargain, right? For a tourist, it is. But for the average Nepali, whose salary hasn't magically jumped 10% to match the dollar's rise, everything feels more expensive. Nepal imports almost everything—petrol, gold, iPhones, even a lot of its rice. Since those things are bought globally in dollars, a weak rupee means the price of a liter of petrol stays high, even if global oil prices are stable.
Why the Rate Keeps Climbing
Economists like Nara Bahadur Thapa, a former executive director at the NRB, have pointed out a "recession-like" vibe in the country.
People are leaving.
Every single day, thousands of young Nepalis fly out of Tribhuvan International Airport to work in Dubai, Qatar, Japan, or South Korea. They send home massive amounts of money—remittances. This is exactly why the country has so many dollars in its reserves. But because there isn't enough big-scale investment happening inside Nepal—like major factories or massive new hydropower starts—all that money just sits there.
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The US Federal Reserve has also been a major player. When interest rates in the US are high, investors pull money out of emerging markets like India and put it back into US bonds. This makes the dollar stronger and the Indian (and therefore Nepali) rupee weaker.
The 2026 Forecast: Will it Hit 150?
Predicting currency is a fool's errand, but we can look at the trends. Some analysts at Morgan Stanley and ABN AMRO have suggested the US dollar might see a bit of a "bear market" or cooling-off period later in 2026. They think the dollar is "overvalued" by maybe 10-15% globally.
If the US Fed starts cutting rates aggressively, we might see the dollar settle back down toward 140. However, if the trade deficit in India continues to widen, the peg will keep the Nepali rupee under pressure.
Wait, what about the "Black Market" rate? In some places, you’ll hear about people offering "more than the bank rate" for dollars. Honestly, it’s rarely worth the risk for a few extra rupees. Stick to the official money changers who give you a receipt. The spread between the "Buy" and "Sell" rates at banks like Nabil Bank or Standard Chartered Nepal is usually quite fair—often less than 1 rupee.
Practical Tips for Dealing with the US Dollar in Nepal
- Don't Change Everything at the Airport: The rates at the Kathmandu airport are notoriously "meh." Change $20 for a taxi, then head into the city for a better rate.
- Crisp Bills Only: This is a weird quirk of Nepal (and much of Asia). If your $1 or $100 bill has a tiny tear, a pen mark, or looks like it went through a washing machine, the bank might reject it. Keep your cash flat and clean.
- The "Big Bill" Bonus: Often, money changers will give you a slightly better rate for $50 or $100 bills than they will for $1 or $5 bills. It’s usually only a few paisa difference, but it adds up.
- Keep Your Receipts: If you have a bunch of rupees left at the end of your trip and want to change them back to dollars at the airport, you'll need the "Encashment Certificate" (the receipt) you got when you first bought the rupees. Without it, the banks are legally allowed to say no.
- Digital is Growing: While Nepal is still very much a cash society, many shops in Thamel now take Visa or Mastercard. Just be aware of the 3% surcharge many merchants add to the bill.
The story of us dollar 1 in nepal isn't just about a number on a screen. It’s a reflection of a country that is incredibly stable on paper (thanks to those massive reserves) but struggling to find its footing in terms of domestic growth. For now, the dollar remains king, and the rupee remains a bargain for anyone visiting the Himalayas.
If you're planning a trip or sending money home, keep an eye on the Indian Rupee’s health. As long as the peg exists, that's the real engine behind your exchange rate. Check the official Nepal Rastra Bank website daily, as they update the "reference rate" every morning. Currently, the trend is "sideways to up," so don't expect a return to the 120s anytime soon.
Focus on getting the most out of your exchange by using authorized dealers and keeping those bills pristine. That extra rupee per dollar might not seem like much, but in a country where 144 NPR buys you a full meal, every cent counts.