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Submitted by Prajwol on
I don't have faith in the Central Bank of my native country (Nepal) to control the inflation. What I never understood about Nepal is how they could keep the foreign currency exchange rate constant with India. One Indian Rupee is equivalent to 1.60 Nepali Rupee; it has been always the same since I last recall. India has made a significant progress in last decade while Nepal has been a stalemate (or even declining), but still 1 IRs = 1.60 NRs??? I can't make any sense of that. But as I am not an economist, there must surely be a reason why they keep that constant :( If observing the American market is any indicator that can be extrapolated to South Asia, I don't see inflation coming down. The Fed’s are hard pressed not to increase the interest rate, primarily because of the recession but also politically due to the upcoming election year. A very noticeable, exponential, increase of "Cash for Gold" type businesses in USA are the strongest indicator that people are beginning to have less faith in their currency.