Nepal - Official exchange rate (LCU per US$, period average)

The value for Official exchange rate (LCU per US$, period average) in Nepal was 118.13 as of 2021. As the graph below shows, over the past 61 years this indicator reached a maximum value of 118.35 in 2020 and a minimum value of 7.50 in 1960.

Definition: Official exchange rate refers to the exchange rate determined by national authorities or to the rate determined in the legally sanctioned exchange market. It is calculated as an annual average based on monthly averages (local currency units relative to the U.S. dollar).

Source: International Monetary Fund, International Financial Statistics.

See also:

Year Value
1960 7.50
1961 7.62
1962 7.62
1963 7.62
1964 7.62
1965 7.62
1966 7.62
1967 8.03
1968 10.13
1969 10.13
1970 10.13
1971 10.13
1972 10.13
1973 10.50
1974 10.56
1975 11.00
1976 12.50
1977 12.50
1978 12.11
1979 12.00
1980 12.00
1981 12.34
1982 13.24
1983 14.55
1984 16.46
1985 18.25
1986 21.23
1987 21.82
1988 23.29
1989 27.19
1990 29.37
1991 37.26
1992 42.72
1993 48.61
1994 49.40
1995 51.89
1996 56.69
1997 58.01
1998 65.98
1999 68.24
2000 71.09
2001 74.95
2002 77.88
2003 76.14
2004 73.67
2005 71.37
2006 72.76
2007 66.42
2008 69.76
2009 77.57
2010 73.26
2011 74.02
2012 85.23
2013 93.08
2014 97.55
2015 102.41
2016 107.38
2017 104.51
2018 108.93
2019 112.61
2020 118.35
2021 118.13

Development Relevance: In a market-based economy, household, producer, and government choices about resource allocation are influenced by relative prices, including the real exchange rate, real wages, real interest rates, and other prices in the economy. Relative prices also largely reflect these agents' choices. Thus relative prices convey vital information about the interaction of economic agents in an economy and with the rest of the world.

Limitations and Exceptions: Official or market exchange rates are often used to convert economic statistics in local currencies to a common currency in order to make comparisons across countries. Since market rates reflect at best the relative prices of tradable goods, the volume of goods and services that a U.S. dollar buys in the United States may not correspond to what a U.S. dollar converted to another country's currency at the official exchange rate would buy in that country, particularly when nontradable goods and services account for a significant share of a country's output. An alternative exchange rate - the purchasing power parity (PPP) conversion factor - is preferred because it reflects differences in price levels for both tradable and nontradable goods and services and therefore provides a more meaningful comparison of real output.

Statistical Concept and Methodology: The exchange rate is the price of one currency in terms of another. Official exchange rates and exchange rate arrangements are established by governments. Other exchange rates recognized by governments include market rates, which are determined largely by legal market forces, and for countries with multiple exchange arrangements, principal rates, secondary rates, and tertiary rates.

Periodicity: Annual

Classification

Topic: Financial Sector Indicators

Sub-Topic: Exchange rates & prices