Nepal's Economy Under remittance security blanket: If Adam Smith were to be alive today. Even he would be shocked with the present economic scenario of Kathmandu's Economy. The cash liquidity is so high (mainly due to remittances) that the economy is crash proof for at least 10+ years. When the global migration laws change and the remittance pipe dries out then we are headed for trouble. So the strategic move now is to make a transition to a formal economy and create environment for SME businesses. When growing up I heard this saying "Garib Desh ko Dhani Raja" now the saying is more like "Garib desh ko Dhani janata" Major portion of our economy operates within informal sector so it will be very tough to have a very clear picture of our economy. In the mean time economy has found its engine to keep things going. Cant comment much about the devaluation coz I am not pretty ignorant about the marco economic relations that determines the rate. My personal hunch is I think we are better off having our currency pegged to India as their economy is in upward trend. in the mean time check this link out http://www.timesofmoney.com/remittance/jsp/rmt_NEWS.jsp They are predicting RS to gain more than 2 RS..