How to Exchange Currency in Nepal: Tips for Tourists

Traveling to a new country requires a lot of preparation, especially when it comes to managing your finances. For tourists visiting Nepal, one of the essential tasks is figuring out how to exchange currency efficiently. Nepal operates on the Nepalese Rupee (NPR), and while many larger hotels and tourist areas accept credit cards, cash is still king in most parts of the country.

In this blog post, we will provide a complete guide to exchanging currency in Nepal. From knowing where to get the best exchange rates to avoiding common scams, this guide will help ensure you have a hasslefree experience with your money while traveling through this beautiful country. We’ll also include 10 frequently asked questions (FAQs) to address any concerns you may have.

1. Understanding the Nepalese Rupee (NPR)

Before diving into currency exchange tips, it’s essential to understand Nepal’s local currency, the Nepalese Rupee (abbreviated as NPR). Nepalese Rupees are denoted with the symbol “रू” or sometimes “Rs” and are available in both coins and banknotes.

A. Denominations of the Nepalese Rupee
Nepalese Rupees come in several denominations, both in coins and notes:

Coins: Coins are available in 1, 2, 5, and 10 NPR denominations.
Banknotes: Banknotes are available in 1, 2, 5, 10, 20, 50, 100, 500, and 1,000 NPR denominations.

Tourists usually deal with banknotes rather than coins, especially for highervalue transactions. It’s a good idea to keep smaller denominations on hand for local purchases, such as snacks, bus fares, or small souvenirs, since many shops or street vendors may not have change for larger notes like the 1,000 NPR bill.

B. Exchange Rate Overview
The exchange rate between the Nepalese Rupee and major foreign currencies like the US Dollar (USD), Euro (EUR), British Pound (GBP), and Indian Rupee (INR) fluctuates regularly. It’s advisable to check the current exchange rates before exchanging money. On average, as of the latest information, 1 USD equals approximately 120 NPR, but rates can vary depending on where you exchange your currency.

2. Where to Exchange Currency in Nepal

Exchanging currency in Nepal is relatively straightforward. Tourists have several options, each with its pros and cons. Below are the most common places where you can exchange your money in Nepal.

A. Tribhuvan International Airport

The most convenient place to exchange currency upon arrival in Nepal is at Tribhuvan International Airport in Kathmandu. The airport has several currency exchange counters located in the arrivals area. These counters offer quick service, but be aware that airport exchange rates are typically less favorable compared to other places.

Pros: Convenient, open 24/7, easy access upon arrival.
Cons: Lower exchange rates compared to banks or money changers in the city.

B. Banks

Banks in Nepal offer reliable currency exchange services with competitive rates. Major banks like Nepal Rastra Bank, Standard Chartered, and Nabil Bank have branches in Kathmandu and other cities, and most of them provide currency exchange services.

Pros: Safe and secure, competitive exchange rates, transparent fees.
Cons: Limited working hours (typically 10 AM 4 PM), closed on weekends and public holidays.

C. Licensed Money Changers

Licensed money changers are perhaps the most popular option for tourists looking to exchange currency in Nepal. These currency exchange offices are easy to find in popular tourist areas such as Thamel in Kathmandu and Lakeside in Pokhara. They often offer better rates than banks or airport exchange counters.

Pros: Competitive rates, quick service, widespread availability in tourist areas.
Cons: Not all money changers are trustworthy; always check for a licensed operator.

D. ATMs

For those who prefer not to carry large amounts of cash, using ATMs to withdraw local currency is a convenient option. ATMs are readily available in major cities like Kathmandu and Pokhara, as well as in popular trekking regions. However, ATMs in remote areas may be scarce, so plan ahead if you’re venturing into less developed regions.

Pros: Convenient, 24/7 access, allows direct withdrawal in NPR.
Cons: Foreign transaction fees and withdrawal limits, less reliable in rural areas.

E. Hotels and Guesthouses

Some hotels and guesthouses in tourist areas offer currency exchange services for their guests. While this can be convenient, the exchange rates provided by hotels are usually less favorable than those at banks or money changers.

Pros: Convenient, especially if you’re staying in a hotel for an extended period.
Cons: Higher fees and less competitive rates.

3. Tips for Getting the Best Exchange Rates

Getting the best exchange rate in Nepal can save you a significant amount of money during your trip. Here are a few tips to ensure that you’re not losing out when exchanging currency:

A. Compare Rates
Before exchanging your money, compare the exchange rates at different places, including banks, money changers, and ATMs. Keep in mind that rates can vary significantly, and a quick comparison can help you find the best deal.

B. Avoid Airport Exchanges for Large Amounts
While exchanging a small amount of money at the airport for immediate needs is fine, it’s best to avoid changing large sums of money there due to the less favorable rates.

C. Use Major Currencies
If you’re traveling with US Dollars, Euros, or British Pounds, you’ll typically get better exchange rates. These currencies are widely accepted for exchange in Nepal. Smaller or less common currencies may not be accepted at all money changers or banks.

D. Check for Hidden Fees
Some currency exchange offices may charge service fees or offer lower rates by embedding fees into the exchange rate. Always ask if there are any additional fees or commissions before proceeding with the transaction.

E. Use ATMs Wisely
If you prefer using ATMs, make sure to withdraw larger sums of money at once to avoid frequent transaction fees. Many ATMs charge a fixed fee for foreign withdrawals, which can add up if you make multiple small withdrawals.

4. Safety Tips When Exchanging Currency

Currency exchange can be a smooth and safe process in Nepal if you take certain precautions. Here are some safety tips to ensure your money is secure:

A. Exchange at Licensed Money Changers
Only exchange currency at licensed money changers and banks. Licensed money changers will display their registration certificate, so make sure to look for this before handing over any cash.

B. Count Your Money Carefully
Always count your money before leaving the exchange counter. Ensure you’ve received the correct amount, and if possible, count it in front of the cashier. This reduces the risk of being shortchanged.

C. Keep Receipts
Whenever you exchange money in Nepal, the money changer or bank will provide a receipt. Keep these receipts safe, as they may be required if you want to exchange Nepalese Rupees back into your home currency when leaving the country.

D. Beware of Counterfeit Notes
While Nepal is generally a safe place for currency exchange, counterfeit notes can sometimes be in circulation. Check the notes for authenticity, especially higher denominations. Genuine NPR notes have clear watermarks and other security features.

E. Use ATMs in Safe Locations
If you are withdrawing money from ATMs, choose machines located in secure, welllit areas. ATMs inside bank branches, shopping malls, or hotels are usually safer and less prone to skimming or fraud.

5. Can You Use Foreign Currency in Nepal?

Nepal operates primarily on the Nepalese Rupee, and while some highend hotels, restaurants, and shops in tourist areas may accept US Dollars, Euros, or Indian Rupees, it’s not advisable to rely on foreign currencies for everyday transactions. It’s always best to carry Nepalese Rupees for local purchases, especially in smaller towns or rural areas.

A. Indian Rupee Usage
The Indian Rupee (INR) is widely accepted in Nepal due to the close economic ties between the two countries. However, only certain denominations (typically 100 INR and below) are commonly accepted. Larger INR notes, such as 500 and 2,000 INR, may not be accepted everywhere due to concerns about counterfeit currency.

6. Currency Exchange Rules in Nepal

When exchanging currency in Nepal, it’s important to be aware of certain regulations and restrictions to avoid complications.

A. Currency Exchange Limits
There are no strict limits on how much foreign currency you can exchange in Nepal, but large amounts may attract scrutiny, especially if you are exchanging at a bank. It’s always a good idea to keep documentation of your currency exchanges, such as receipts or withdrawal slips, in case you are questioned by authorities.

B. Reexchanging Nepalese Rupees
When leaving Nepal, you can exchange leftover Nepalese Rupees for foreign currency, but only at authorized money changers or the airport. Keep in mind that you will need to present receipts from your original currency exchange to do this, and there may be limits on the amount you can exchange back.

C. Using Credit and Debit Cards
Major credit and debit cards (Visa, MasterCard, and sometimes American Express) are accepted at larger hotels, restaurants, and shops in Kathmandu, Pokhara, and other tourist areas. However, outside of these regions, cash is the preferred and sometimes the only accepted form of payment. Always carry sufficient cash, especially if you’re venturing into rural or remote areas, where card payments may not be accepted, and ATMs might be scarce.

7. Using ATMs in Nepal

As mentioned earlier, using ATMs is a convenient way to access local currency in Nepal. However, there are some things you should keep in mind to ensure that your experience with ATMs is smooth and troublefree.

A. ATM Availability
ATMs are widely available in major cities like Kathmandu, Pokhara, and other popular tourist destinations. However, in more remote areas, such as trekking routes and small villages, ATMs are either rare or nonexistent. Always plan ahead by withdrawing enough cash before heading into rural regions.

B. Daily Withdrawal Limits
Most ATMs in Nepal have a daily withdrawal limit, typically ranging from 10,000 to 35,000 NPR (approximately $85 to $300 USD). Keep in mind that your own bank may also impose limits on how much you can withdraw per day when using an international ATM.

C. ATM Fees
Be prepared for ATM fees when using a foreign bank card in Nepal. Most local ATMs will charge a fee (ranging from 300 to 500 NPR, approximately $3 to $5 USD) for each withdrawal. Additionally, your home bank may charge a foreign transaction fee on top of this. To minimize these fees, try to withdraw larger sums of money at once rather than making multiple small withdrawals.

D. Card Safety
Nepal is generally safe for using ATMs, but like anywhere, it’s essential to take precautions. Use ATMs located inside bank branches or wellknown establishments to reduce the risk of card skimming or fraud. Always cover the keypad when entering your PIN and keep an eye on your bank account for any unauthorized transactions.

8. Credit Card Use in Nepal

Credit cards are accepted in larger hotels, restaurants, and shops in major tourist areas, but cash is still king in most parts of Nepal. Here’s what you need to know about using credit cards in the country:

A. Where Credit Cards Are Accepted
In cities like Kathmandu, Pokhara, and Chitwan, you can use credit cards at upscale hotels, restaurants, souvenir shops, and trekking agencies. However, smaller guesthouses, local restaurants, and shops in rural areas often do not accept cards, so it’s essential to carry cash for everyday expenses.

B. Credit Card Fees
Many businesses in Nepal may charge an additional fee (usually around 34%) for using a credit card. This fee is typically added to the bill when paying for goods or services. Be sure to ask if a fee will be applied before you swipe your card.

C. Emergency Backup
It’s a good idea to carry a credit card as a backup in case you run out of cash or encounter unexpected expenses. Make sure your card has a good international support system in case it gets lost or stolen.

9. How to Handle Currency When Trekking

Trekking in Nepal is one of the most popular activities, attracting thousands of adventurers every year. Whether you’re tackling the Everest Base Camp Trek, Annapurna Circuit, or another trail, it’s essential to plan ahead for your currency needs in these remote areas.

A. Cash is King
While credit cards and ATMs are common in cities, trekking regions are different. Most teahouses and small shops along trekking routes do not accept cards, so you will need to carry enough cash for the entire trek. This includes money for food, accommodation, snacks, and any emergency expenses.

B. Local Currency
Always carry Nepalese Rupees when trekking, as foreign currency is generally not accepted in rural areas. Make sure to exchange your money in major cities like Kathmandu or Pokhara before starting your trek.

C. Budgeting for a Trek
It’s a good idea to plan your budget carefully and withdraw enough cash before leaving for your trek. Estimate how much you’ll need per day (typically around 2,0004,000 NPR per day, depending on the region and the level of comfort you desire) and withdraw accordingly.

D. Carrying Cash Safely
When carrying large sums of cash, use a money belt or hidden pouch to keep your money safe and secure. Distribute your cash in different pockets or bags so you’re not carrying all your money in one place.

10. ReExchanging Nepalese Rupees Before Departure

If you have leftover Nepalese Rupees at the end of your trip, you can exchange them back into your home currency before leaving the country. However, there are a few things to keep in mind:

A. Exchange at the Airport
The best place to exchange leftover NPR for foreign currency is at Tribhuvan International Airport. There are money exchange counters at the airport that will convert your Nepalese Rupees back into major foreign currencies like USD, EUR, or GBP. Keep in mind that you may need to show your original currency exchange receipts, so make sure to keep them with you during your trip.

B. ReExchange Limits
There are limits on how much NPR you can exchange back into foreign currency, and these limits can vary depending on the exchange counter or regulations at the time. Generally, you’re allowed to exchange up to the amount you originally exchanged into NPR, so keeping receipts is essential.

C. Donate Leftover Currency
Another option is to donate your leftover currency to local charities or causes. Many airports and public places in Nepal have donation boxes, especially for earthquake relief or educational projects. It’s a great way to give back to the local community.

11. FAQs About Exchanging Currency in Nepal

1. What is the best currency to bring to Nepal?
The best currencies to bring to Nepal are US Dollars (USD), Euros (EUR), and British Pounds (GBP). These are widely accepted by banks and money changers, and you’ll get better exchange rates for these major currencies.

2. Can I use Indian Rupees in Nepal?
Yes, Indian Rupees (INR) are widely accepted in Nepal, but only in smaller denominations such as 100 INR or below. Larger denominations like 500 and 2,000 INR are generally not accepted due to concerns about counterfeiting.

3. Should I exchange money before arriving in Nepal?
It’s not necessary to exchange money before arriving in Nepal, as you can easily exchange your currency at the airport, banks, or money changers in Kathmandu. However, it’s a good idea to carry some local currency for immediate expenses upon arrival.

4. Are there currency exchange services at the airport?
Yes, Tribhuvan International Airport in Kathmandu has several currency exchange counters where you can exchange foreign currency for Nepalese Rupees. Keep in mind that airport exchange rates may not be as favorable as those in the city.

5. What are the ATM withdrawal limits in Nepal?
ATM withdrawal limits in Nepal vary depending on the bank, but they typically range from 10,000 to 35,000 NPR per transaction. Be aware that foreign ATM fees and your bank’s transaction fees may apply.

6. Is it safe to use ATMs in Nepal?
Yes, using ATMs in Nepal is generally safe, but it’s always best to use ATMs located in welllit, secure areas such as inside banks, shopping malls, or hotels. Avoid using ATMs in isolated or poorly maintained locations.

7. Can I use credit cards in Nepal?
Credit cards are accepted at larger hotels, restaurants, and shops in cities like Kathmandu and Pokhara. However, smaller businesses and rural areas typically do not accept credit cards, so it’s essential to carry cash.

8. Are there any fees when exchanging currency in Nepal?
Some banks and money changers may charge a small fee for currency exchange services. Always ask if there are any fees or commissions before completing the transaction. ATMs also charge fees for foreign card withdrawals.

9. Can I exchange leftover Nepalese Rupees back into my home currency?
Yes, you can exchange leftover Nepalese Rupees back into foreign currency at authorized exchange counters, typically at the airport. You’ll need to show the receipts from your original currency exchanges, and there may be limits on how much you can exchange back.

10. What should I do with leftover Nepalese Rupees if I can’t exchange them?
If you can’t exchange your leftover Nepalese Rupees, consider donating them to a local charity or cause. Many airports and public places in Nepal have donation boxes where you can contribute to various initiatives.

Conclusion

Exchanging currency in Nepal is a straightforward process, but it’s important to be well informed to get the best rates and avoid common pitfalls. Whether you’re exchanging at the airport, using a licensed money changer, or withdrawing cash from an ATM, knowing how and where to handle your currency will ensure a smoother and more enjoyable trip. By following these tips and planning, you’ll be well prepared to manage your finances during your adventure in Nepal!