Date: March 9, 2026
Key Developments Affecting the Nepalese Rupee (NPR):
1. Surge in Foreign Exchange Reserves
By mid-December 2025, Nepal's foreign exchange reserves reached NPR 3.2 trillion, exceeding half of the country's GDP. This increase is primarily due to high remittance inflows, while domestic investment remains low. (kathmandupost.com)
2. Lifting of Ban on High-Denomination Indian Currency Notes
In December 2025, Nepal lifted its decade-long ban on high-denomination Indian rupee notes (₹200 and ₹500). This change facilitates easier cross-border transactions between Nepal and India. (myind.net)
3. Political Instability and Protests
In September 2025, widespread protests led to the resignation of Prime Minister K.P. Sharma Oli. The interim government, led by Sushila Karki, is preparing for elections in 2026. (en.wikipedia.org)
4. Teachers' Protests Over Education Bill
In April 2025, public school teachers nationwide protested against the government's proposed School Education Bill, demanding job security and equal pay. (en.wikipedia.org)
These events have contributed to economic uncertainty, potentially impacting the stability of the Nepalese Rupee.
Canadian Dollar Update
Updated 01 Aug 2026 • 23:45 GMT
The Canadian dollar has shown resilience against the US dollar, driven by fluctuating oil prices and cautious monetary policy from the Bank of Canada (BoC). As of mid-July, USD/CAD is trading around 1.4033 after stronger oil prices provided support to the loonie, despite the BoC's decision to hold its rate steady at 2.25% but keeping the possibility of future hikes open. Market sentiments are tempered by weak inflation and trade uncertainties, particularly concerning the USMCA, which are impacting near-term CAD expectations.
Key watchpoints:
- Monitor changes in global oil prices as they significantly impact the commodity-linked Canadian dollar.
- Watch for any updates or changes in monetary policy from the Bank of Canada, particularly rate hike announcements.
- Pay attention to upcoming Canadian employment and economic data releases for further insights into CAD movements.