The Nepalese Rupee, also known as NPR is the official currency of Nepal, and has been since 1932. It is currently pegged to the Indian Rupee at a rate of 1.6 NPR to INR. This means when exchanging between the two currencies, 1 Nepalese Rupee is equal to 1.6 Indian Rupees. This arrangement ensures that Nepal has a stable economy and is beneficial to both countries.

Nepal has experienced significant economic growth in the last decade, primarily due to a decrease in inflation, an increase in its Gross Domestic Product (GDP), and the introduction of the new Nepalese Rupee. This growth has enabled Nepal and its people to purchase more goods and services, as well as travel abroad.

The Nepalese Rupee is available in coins and banknotes of various denominations. Nepal’s coins are minted in paisa and rupee denominations, while the banknotes are of five, ten, twenty, fifty, one hundred and five hundred denominations.

However, transacting in the NPR can be difficult for foreigners because there are three separate exchange rates operating in Nepal. These are the official Central Bank rate, the legal Private Bank rate, and the illegal Black Market rate. While the Central Bank rate is the most reliable, it is still quite different from the other two. So, before exchanging foreign currency for Nepalese Rupees one needs to take into consideration these three exchange rates.

In conclusion, the Nepalese Rupee has enabled Nepal to grow economically and is a convenient way for locals to complete transactions. Despite being pegged to the Indian Rupee, transacting in Nepalese Rupees can be a little tricky due to the three different exchange rates.