Monday, February 12, 2018

Remittance inflow drops for third month in a row

Remittance – sent home by Nepalis working abroad – growth rate fell for the third consecutive month in the current fiscal year.
The drop in growth of remittance inflow could exert pressure on foreign exchange reserves that needs to remain robust to support imports.
The drop in growth rate – from the fourth month in mid-November – continued till the sixth month in mid-January, according to the latest Macroeconomic Report of the central bank. Remittance has been the life line for battered economy since the last one decade. Lately, the banks and financial institutions have been largely dependent on remittance for the more lending. The remittance, which is almost equivalent to 32 per cent compared to the gross domestic product (GDP), inflow growth rate dropped by 0.5 per cent to Rs 340.5 billion in the six-month period between mid-July and mid-January of the current fiscal year. However, during the the same period in the last fiscal year, growth rate of remittance inflow had jumped by 5.7 per cent, the central bank report reads.
The drop in the growth rate of remittance is supported by the drop in the number of migrant Nepalis workers. The country has seen a drop in Nepalis going overseas for work since last two years after the devastating earthquake. The drop in migrant Nepali workers has continued in the current fiscal year as the number of outgoing migrant workers posted a decrease of 1.8 per cent in the six-month period.

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