Despite festive season and high exchange rate, remittance inflow to the country has started decreasing for the first time in four years.
According to the Current Macroeconomic and Financial Situation of Nepal – based on two months’ data of fiscal year 2019-20 – remittance inflow from abroad decreased by 0.3 per cent to Rs 153.73 billion compared to the same period in the last fiscal year. Nepal had received a total of Rs 154.2 billion in remittances in the first two months of the last fiscal year. The remittance inflow witnessed a drop of Rs 0.47 billion in the first two months compared to last fiscal years’ two months, despite the festive season, which usually witness increase in the remittance inflow.
“In US dollar terms too, the remittance inflow has dropped by 1.3 per cent to $1.36 million in the first two months – in the months during mid-July and mid-September – of the current fiscal year,” the central bank data revealed, adding that the fall in the number of workers abroad has hit the remittance inflow.
According to the central bank report, the number of Nepali migrant workers – institutional and individuals – has increased by only 0.2 per cent in the first two months of the current fiscal year. “Malaysia remained closed for employment of Nepali workers for almost one-and-a-half years. Its impact is now being reflected in the flow of remittance. Not only Malaysia, some other Mid East countries that are major destinations for Nepali migrant workers are also cutting off their projects and vacancies.
However, economists attribute the fall in remittance inflow to increasing hundi and capital flight but the government claimed that it is too early to predict and worry as it is the figure of only two months.
According to the Current Macroeconomic and Financial Situation of Nepal – based on two months’ data of fiscal year 2019-20 – remittance inflow from abroad decreased by 0.3 per cent to Rs 153.73 billion compared to the same period in the last fiscal year. Nepal had received a total of Rs 154.2 billion in remittances in the first two months of the last fiscal year. The remittance inflow witnessed a drop of Rs 0.47 billion in the first two months compared to last fiscal years’ two months, despite the festive season, which usually witness increase in the remittance inflow.
“In US dollar terms too, the remittance inflow has dropped by 1.3 per cent to $1.36 million in the first two months – in the months during mid-July and mid-September – of the current fiscal year,” the central bank data revealed, adding that the fall in the number of workers abroad has hit the remittance inflow.
According to the central bank report, the number of Nepali migrant workers – institutional and individuals – has increased by only 0.2 per cent in the first two months of the current fiscal year. “Malaysia remained closed for employment of Nepali workers for almost one-and-a-half years. Its impact is now being reflected in the flow of remittance. Not only Malaysia, some other Mid East countries that are major destinations for Nepali migrant workers are also cutting off their projects and vacancies.
However, economists attribute the fall in remittance inflow to increasing hundi and capital flight but the government claimed that it is too early to predict and worry as it is the figure of only two months.
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