We can't change the peg especially since India is our major trading partner (not the other way around). We're too small an economy to change the free market prices in India. With a floating exhange rate, an uncontrollable inflation would persist as there is no way on earth that the NRP would be able to keep up with the INR in global demand for its reserves. Especailly in times of economic uncertainty and political turmoil, its good that the peg is still holding otherwise we could see mega infaltionary trends takeing place all over Nepal. BTW, am beginning to wonder how long will this peg hold as it just doesn't seem viable given India's double digit GDP growth percentage and an ever increasing outlook on the GBP/Per capita GDP. Also, USD has nowhere else to go but lower especially since more rate cuts are forecasted in the near horizon.