Kesto_Manche
                         The reason why the Nepali rupee is pegged against the Indian rupee is primarily because more than 70 percent of our international trade is carried out with India. It is a common practice around the world where a smaller country pegs their currency with a dominant neighbor to hedge against volatile exchange rates and high inflation.

Also one thing we don't give too much thought on is that although our imports outweigh our exports to the tune of 500%, we are increasingly become self-dependent in numerous sectors, like agro-products, cement, steel, poultry, mean, garments, shoes, medicines, telecommunications and hydro. The main reasons for a sustained high trade deficit is due to mammoth imports of petroleum (48 billion rupees a year), gold (33 billion this year so far) and vehicles. We don't have any of our oil or gold and the government raises tons of revenue through vehicle imports (20 billion in revenue last year), and these will continue to put major dents in the balance of payments.

But as pire pointed out, the salary hike for gulf workers and the increased demand for workers in Malaysia, UAE, Saudi and Qatar will record a robust increase in remittances in the coming months and the balance of payments crisis will abate for now. People need to annihilate the Maoists in the coming election so that industries can open and we can reduce our trade deficit.