Pula, the currency for Nepal, has been devalued by 50% since February and has been in a downward spiral for months.
The devaluation has hit Nepal’s tourism industry hard and triggered an international outcry.
The central bank said it would review the value of the rupee for inflation, which it says has remained low.
Pula is Nepal’s official currency and is widely used in transactions between the central bank and banks and is worth approximately $1.2bn, according to the Reserve Bank of Nepal.
Nepal is the poorest country in the world and relies heavily on foreign exchange to pay for essential goods.
The currency was worth about $400bn in 2015 and is still below the international benchmark, the U.S. dollar.
The Reserve Bank said it will take “appropriate measures” to protect the value and stability of the Nepalese currency.
Nations that use the international money supply have to maintain an exchange rate within 2% of the U in the global system, or $1 to $1, which is the target set by the IMF for developing countries.
But international banks, including the International Monetary Fund, the World Bank and the European Union, have warned of a possible risk to global stability if India, China and others devalue their currencies.