# Nepalese rupee

> Currency of Nepal

**Wikidata**: [Q202895](https://www.wikidata.org/wiki/Q202895)  
**Wikipedia**: [English](https://en.wikipedia.org/wiki/Nepalese_rupee)  
**Source**: https://4ort.xyz/entity/nepalese-rupee

## Summary
The Nepalese rupee is the official currency of Nepal, introduced in 1932 as the nation's medium of exchange for goods and services. It replaced the Nepalese mohar, which had been used since the 17th century, and remains the legal tender under both the Kingdom of Nepal (1768–2008) and the subsequent republic established in 2008.

## Key Facts
- **Official currency of Nepal**: The Nepalese rupee serves as the legal tender in Nepal, a country in South Asia.
- **Introduction date**: The currency was established in 1932, replacing the Nepalese mohar.
- **Predecessor**: The Nepalese mohar was the currency used in Nepal from the 17th to the early 20th century.
- **Aliases**: Also known as "Rupee (1932-date)" or by its ISO code "NPR."
- **Governance**: Operated by the Kingdom of Nepal (1768–2008) and the modern republic of Nepal (since 2008).
- **Classification**: Part of the broader "rupee" family of currencies, which includes other South Asian monetary units.
- **Website**: The Nepal Rastra Bank (central bank) oversees the rupee, with its official site at [http://www.nrb.org.np](http://www.nrb.org.np).
- **Wikidata presence**: The currency has 66 sitelinks across Wikimedia projects.

## FAQs

**What is the Nepalese rupee?**
The Nepalese rupee is the national currency of Nepal, used for all financial transactions within the country since its introduction in 1932.

**When was the Nepalese rupee introduced?**
The rupee was officially introduced in 1932, replacing the older Nepalese mohar currency system.

**What currency did the Nepalese rupee replace?**
It succeeded the Nepalese mohar, which had been in use from the 17th century until the early 20th century.

**Who manages the Nepalese rupee?**
The currency is regulated by Nepal’s central bank, the Nepal Rastra Bank, which oversees its issuance and monetary policy.

**Is the Nepalese rupee related to other rupee currencies?**
Yes, it belongs to the "rupee" family of currencies, a common name shared by several South Asian monetary units, including the Indian rupee.

**What are the historical phases of Nepal’s currency governance?**
The rupee was initially managed under the Kingdom of Nepal (1768–2008) and continues under the republic established on May 28, 2008.

## Why It Matters
The Nepalese rupee plays a critical role in Nepal’s economic stability and sovereignty, serving as the backbone of its financial system. As the sole legal tender, it facilitates trade, commerce, and daily transactions for Nepal’s population. Its introduction in 1932 marked a modernization of the country’s monetary system, replacing the mohar with a more standardized currency aligned with global practices. The rupee’s continuity through Nepal’s transition from monarchy to republic underscores its importance as a unifying national symbol.

## Notable For
- **Replacing the mohar**: The Nepalese rupee marked the end of the centuries-old mohar currency system.
- **Longevity under different governments**: It has remained the national currency through Nepal’s political transitions, from monarchy to republic.
- **Part of the rupee family**: One of several currencies named "rupee," reflecting South Asia’s shared monetary history.
- **Central bank oversight**: Managed by the Nepal Rastra Bank, ensuring monetary policy and economic stability.

## Body

### **History and Origins**
The Nepalese rupee was introduced in **1932**, replacing the **Nepalese mohar**, a silver coin that had been Nepal’s primary currency since the 17th century. The mohar was phased out as Nepal sought to modernize its monetary system, adopting a rupee-based currency in line with neighboring countries like India. The transition reflected broader economic reforms and the need for a more stable and scalable currency.

### **Governance and Administration**
The Nepalese rupee is **operated and regulated by the Nepal Rastra Bank**, the central bank of Nepal. The bank’s official website ([http://www.nrb.org.np](http://www.nrb.org.np)) provides monetary policies, exchange rates, and economic reports. Historically, the currency was managed under the **Kingdom of Nepal (1768–2008)**, and its administration continued seamlessly after Nepal became a **republic on May 28, 2008**.

### **Classification and Relations**
The Nepalese rupee is part of the broader **"rupee" currency family**, a term used for multiple South Asian currencies, including the Indian rupee, Pakistani rupee, and Sri Lankan rupee. This shared nomenclature highlights the region’s interconnected monetary history, though each rupee operates independently under its respective central bank.

### **Predecessor: The Nepalese Mohar**
Before the rupee, Nepal used the **Nepalese mohar**, a silver coin introduced in the 17th century. The mohar remained in circulation until the early 20th century, when economic and administrative changes necessitated a more uniform currency system. The rupee’s adoption in 1932 marked a shift toward a decimal-based monetary structure, improving trade and financial transactions.

### **Modern Usage and Economic Role**
Today, the Nepalese rupee (**NPR**) is the sole legal tender in Nepal, used for all domestic transactions, from daily purchases to large-scale trade. It is not pegged to any foreign currency but is often compared to the Indian rupee due to cross-border trade and economic ties. The Nepal Rastra Bank monitors inflation, exchange rates, and money supply to maintain the rupee’s stability.

### **Symbolism and National Identity**
Beyond its economic function, the Nepalese rupee represents national sovereignty. Its continuity through Nepal’s political transformations—from monarchy to republic—demonstrates its role as a stable institution amid change. The currency’s design often features national symbols, such as Mount Everest or cultural motifs, reinforcing its significance in Nepalese identity.

### **Digital and International Presence**
While primarily a physical currency, the Nepalese rupee is increasingly used in digital transactions, including mobile banking and online payments. However, its use is largely confined to Nepal, with limited international circulation. The Nepal Rastra Bank’s policies ensure that the rupee remains a controlled currency, preventing excessive volatility in foreign exchange markets.

### **Comparisons with Other Rupees**
Though it shares a name with other South Asian rupees, the Nepalese rupee operates independently. Unlike the Indian rupee, which is widely used in international trade, the Nepalese rupee is primarily a domestic currency. Exchange controls and regulatory policies distinguish it from its regional counterparts, reflecting Nepal’s unique economic priorities.

## References

1. Freebase Data Dumps. 2013