Money in Nepal

Carry enough cash for the entire trek

There are no cash machines on trekking routes. Once you leave Kathmandu or Pokhara for the hills you are working entirely from what you carry, and there is no way to top up. Work out your daily spend from the actual menu and room prices at the altitudes your route reaches — they climb steadily with height, because everything was carried up — then multiply by your days and add a genuinely generous buffer for a delay, an extra night or an unplanned change of plan. Draw it out over several days before departure rather than in one large withdrawal on the morning you leave. Some lodges on the busiest routes will take US dollars for larger bills, but never plan on it.

Cash machines work in Kathmandu and Pokhara, and effectively nowhere else

The main commercial banks operate machines throughout Kathmandu — the tourist district has them in quantity — and around Pokhara's lakeside, and most take Visa and Mastercard. Per-transaction and daily withdrawal limits vary by bank and are lower than travellers from richer countries expect, so plan on several withdrawals rather than one. Machines do run out of cash, particularly around major festivals, which is another argument for drawing your trekking money over a few days instead of on departure morning.

Cards work at upmarket hotels; everything else is cash

Visa and Mastercard are accepted at international-standard hotels, some upmarket restaurants in Kathmandu and Pokhara, and airline offices. Contactless works at a small number of modern terminals in premium city hotels and should not be relied on anywhere else. Teahouses, local restaurants, transport, permit offices, shops and taxis are cash. Nepal is fundamentally a cash economy for visitors, and the mental adjustment — carrying, budgeting and safeguarding physical money — is one of the genuine practical differences from travelling in the region's more card-friendly countries.

Exchange in Kathmandu rather than at home

Licensed exchange offices in Kathmandu's tourist district display their rates openly and are competitive; exchanging Nepali rupees at home is considerably worse. US dollars get the widest acceptance and the best rates, euros are straightforward, and other major currencies are exchangeable at fewer places. Bring clean, undamaged notes, since torn or marked bills are often refused, and carry some small denominations for tips and for situations where change is scarce. The Nepali rupee is pegged to the Indian rupee at a fixed official rate, and Indian currency circulates in small denominations — but large Indian notes are not accepted, which catches out travellers arriving overland.