Navigating Nepal: A Traveler’s Guide to Nepali Currency and Exchange Rates
Planning a trip to Nepal? Let's begin with financial planning about the Nepali currency and the current exchange rates. Before your trip to the Himalayan country of Nepal, learn to manage the local Nepali currency, especially as cash-based transactions are more popular. Therefore, it is advisable to prepare a smart cash strategy while traveling in Nepal.
In this guide, we learn about exchanging currencies to using cards for a smooth and stress-free Nepal adventure.
Nepali Rupee (NPR)
The official currency of Nepal is the Nepali Rupee or the NPR. Though hotels and travel/tour agencies in major hubs like Kathmandu and Pokhara may quote prices in US dollars, most transactions, including food, transport, and shopping, are done in NPR. Carrying local currency is the safest way to get around the country.
Where to Exchange Your Currency in Nepal?
There are several reliable options to exchange your currency in Nepal. Furthermore, it is advisable to wait until you arrive in Nepal to get your Nepali Rupees. You can exchange your currency in one of the following:
Licensed Money Changers in Nepal
You can find licensed money changers across major tourist hubs of Kathmandu, like Thamel and the Lakeside in Pokhara. These money changers offer competitive rates and are more convenient. Furthermore, they have longer operating hours than banks. However, ensure that you use a government-authorized money exchanger. You should also ask for a valid receipt, which you may need while changing the money back to your local currency when you depart.
Banks
Banks across the country accept major currencies like USD, AUD, Euro, and GBP at official rates. Banking transactions are considered more secure, but can be slower and require your passport.
Airport Counters
Airport counters at Tribhuvan International Airport provide convenient money exchange facilities. However, the rates are generally less favorable. We advise avoiding exchanging large sums here. These counters are mostly used to get a small amount of cash immediately upon arrival for taxi and preliminary expenses.
Should I Bring US Dollars?
Major currencies like the US dollar, Euro, Australian dollar, and British Pound are widely accepted by financial institutions in Nepal. It is also required in cash for your visa process upon your arrival at the airport. Ensure your dollar bills are new, crisp, and untorn to avoid any issues with acceptance.
Digital Transactions in Nepal for Travelers
While digital transactions via QR codes are increasingly gaining popularity in cities like Kathmandu and Pokhara, they are primarily linked to local bank accounts. As these services are typically linked to local bank accounts, they are not readily accessible for most tourists.
This may be convenient for travelers at some hotels and shops, but shouldn’t be relied upon completely, especially in rural trekking regions. Cash is the safest and most essential means of transactions. Always ensure you have cash, in local denominations, while traveling to rural areas where you may not have access to ATM services.
Using International Cards and ATMs in Nepal
ATMs are widely available in major cities, including Kathmandu and Pokhara. However, as you travel to the remote trekking region, it can be scarce or non-existent. Therefore, it is always advisable to carry cash (in small denominations) to pay for your additional expenses like hot water, extra food, and Wi-Fi during your trek.
- Card Acceptance: VISA and Mastercard are mostly accepted by ATMs and larger establishments.
- Withdrawal Fees: ATMs charge you around NPR 500 to NPR 700 per transaction for using a foreign card. To minimize the costs, it is wise to withdraw larger amounts at once.
- Transaction Limits: Most ATMs have a withdrawal limit per transaction, typically NPR 35,000.
- Inform your Bank: Before your travel, notify your bank about your plans to use your card in Nepal to prevent it from being blocked for suspicious activity.
Remember, you can use your credit card in Nepal in most high-end hotels, restaurants, and shops. However, smaller businesses operate on a cash-only basis. Therefore, for a more effective financial strategy while traveling in Nepal, it is recommended to carry foreign currency to exchange at money changers and use an ATM card for withdrawal.