Impact of Exchange Rate Change on Foreign Trade Balance in Nepal
Nepal is a land locked country having 800 kms. open border with India. It has been facing the trade deficit from history to yet especially with India and then to the rest of the world (RoW) countries. His Majesty the Government had adopted the different policies in different time but most of them are found to be failed. In these circumstances this study tries to identify whether the exchange rate change (especially the currency devaluation) is the best solution to solve the problem by using the appropriate hypothesis and methodology as mentioned in the article.
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