Dasain fuels extra cash flow in market as crowds swap new notes at Ratnapark

With demand for new notes to give as dakshina rising ahead of Dasain, activity has picked up among note-exchangers on the Ratnapark footpath in Kathmandu.

Traders stationed there are offering crisp notes of denominations 5, 10, 20, 50 and 100 rupees in exchange for a commission. People unable to wait in long bank queues are obtaining notes here by paying an extra fee.

The traders themselves stand in bank queues to exchange notes, which they then sell on the street during Dasain.

Meanwhile, according to Nepal Rastra Bank, nearly 100 billion rupees in additional cash has flowed into the market this year targeting Dasain. Rastra Bank Executive Director Anuj Dahal said total currency in circulation has reached around 900 billion rupees.

On Asoj 1, this figure stood at about 804 billion rupees. After subtracting amounts held in bank and Rastra Bank vaults, net currency in circulation is estimated to have risen from about 797 billion rupees on Asoj 1 to nearly 895-896 billion rupees now.

Rastra Bank has attributed the rise in cash demand to Dasain spending, the long public holiday, and the recent floods and landslides.