There are a number of locations with which to exchange for your currency into Nepalese rupees, and one of the best places is at the Kathmandu airport exchange counter. There are also banks and designated money exchangers in Kathmandu, Pokhara, and Sunauli.
Money exchangers offer slightly better rates than the banks, but the commissions are higher. There is also a "black market" for US dollars where you can get a better deal than the legal exchanges. However, since the Nepalese government liberalized its foreign exchange regime, the "premium" for black market currency trades has decreased. Note that the US dollar is the most widely accepted currency to exchange. Because it is difficult to exchange Nepalese rupees back into your other currency, we advise you to exchange only the amount necessary for a few days.
Credit cards (Visa, MasterCard, and American Express) are accepted at most major hotels, restaurants, and shops. In addition, you can use travelers’ cheques at major locations. You can purchase American Express travelers' cheques from major banks in Kathmandu such as Durbar Marg.