The US dollar price in the country is establishing one after another record. By the time of writing this editorial, the government price for the US dollar was nearly 139 rupees for one unit of it. Accordingly, the hallmark gold price was around one hundred 58 thousand rupees per tola. Understandably, due to the increasing demand for gold in the international market, its price has skyrocketed. However, the US dollar price carries a different story. Nepal’s currency has been tied up with the Indian currency and when the US dollar price inclines in India, automatically, its price will incline in Nepal. After Donald Trump was elected the President of the USA, foreign investors have been suspicious of possible action by Trump against India and also the Indian citizens working in the USA. Therefore, foreign investors are withdrawing their dollar investment from the Indian market, from which, the dollar price has inclined in India and Nepal. Already, for one unit of the US dollar, the price is nearly 90 Indian rupees.

Although India is facing a trade deficit, it has many goods to export, however, Nepal solely relies on imports as it has no significant items to export. Therefore, the Nepali economy is going to be hit by the increasing dollar price. Meanwhile, due to the war between Russia and Ukraine, European countries are also facing many economic problems. Donald Trump’s plan for inclining import tariffs for several countries including India and China has shaken the global market. Unfortunately, the Nepali authorities and economists lack the necessary homework to cope with possible problems appearing in the Indian economy and also the European crisis. Nepal’s market price is going to incline along with an incline of the dollar price. Similarly, the prices of petroleum products are going to be skyrocketed. In such a situation, Nepal should have developed a strategy to rescue its economy by taking the privilege of cheap petroleum products from Russia and also developing special strategic trade relations with China, however, our leaders in the government are happy with additional grant support from the USA for the MCC Nepal Compact. If Nepal fails to take immediate decisions, its economy will suffer seriously.