Preparing for the future, they became accustomed to habits of thrift and saving, and were able to accumulate capital. Nepal, like Korea in the early stage of development, suffers from a lack of capital.
Under a flexible exchange rate regime, domestic currency fluctuates and acts as an automatic stabilizer to contain swings in financial markets… These fluctuations are not in themselves bad… Rather, they shield the economy from temporary shocks. In fact, there are studies showing that a flexible exchange rate better positions emerging market economies to moderate the impact of global financial and monetary forces.