What Are The Reasons Behind Rising In Remittance To Country Despite Prolonged Lockdown?

Nepalese expatriates send money to Nepal is risen by 12.6 percent in the fiscal year. Despite predictions that remittance inflows will decline due to the global spread of COVID-19, capital inflows increased by 12.6 percent to Rs.258.86 billion in the first three months of the current fiscal year. The remittance volume had decreased by 5.1 percent over the previous year’s review period.

The World Bank predicted that remittances in Nepal would decline to £5.31 billion in 2020 from £5.93 billion in 2019, according to a study titled “The Migration and Development Brief”, published in October this year. However, according to the Nepal Rastra Bank’s (NRB) Current Macroeconomic Report released on Wednesday, Nepal received an encouraging amount of remittance inflows during the first quarter, which ended in mid-October. However, according to the central bank’s survey, the number of employees searching for foreign jobs decreased during the time. During the review period, the number of Nepali employees (institutional and individual-new and legalized) who received approval for foreign employment decreased by 96.8%.

Similarly, the report shows that the number of Nepali employees (Renew entry) who received approval for foreign jobs decreased by 78.6 percent during the review period. The rise in remittance inflows, as per NRB officials, is attributed to migrant workers’ money transfers to Nepal through formal channels such as ACE money transfers rather than informal.

How Would You Summarize The Remittance To Nepal In 2020?

The coronavirus pandemic continues to have serious economic consequences for countries around the world, including Nepal. Despite the fact that Nepal has resumed stalled economic activities after a six-month hiatus, the country’s foreign remittance inflow remains a major source of concern. According to the World Bank’s most recent projections, remittance inflows to Nepal are expected to hit £5.31 billion in 2020, down from £6 billion in 2019.

What Are The Predictions Of Analysts To Remittance To Nepal In 2021?

International online money transfers to Nepal, including other low and middle-income countries (LMICs), were expected to fall by 20% to £319.75 billion in 2020 in the April forecast, while updated forecasts show remittances falling by 7.2 percent to $508 billion in 2020 and 7.5 percent to £337.71 billion in 2021.

The World Bank said in its ‘Migration and Development Brief’ published on Thursday that remittances sent by migrant workers are expected to drop 14 percent by 2021 compared to pre-pandemic levels in 2019. According to the survey, the sharp drop in remittances is primarily due to poor economic growth and limited job prospects in destination countries, low oil prices, and depreciation of destination countries’ currencies against the US dollar. Even though expatriates send money to Nepal online, there is a decline due to job loss and lockdown.