What Is The Impact Of Covid-19 On Money Transfer Service In Nepal From Abroad?

The Pandemic has changed the way expatriates send money to Nepal and the rest of the world. The global Pandemic of Coronavirus Infectious Disease (COVID-19) has posed significant challenges and risks to human life and health systems. In the absence of conclusive cures for COVID-19, existing infection prevention and management depend heavily on public health-preventative measures to prevent disease spread, such as lockdown and social distancing.

To combat the spread of COVID-19 infection, more than a hundred countries were in partial or complete lockdown by the end of March 2020, forcing millions of people to stay at home. Economic activity, public health and mental welfare, health care delivery, and health service use have all been severely harmed by the lockdown steps, especially in resource-poor countries like Nepal. Nepal is one of the most vulnerable countries to the COVID-19 Pandemic, with few tools available to combat the outbreak. People are more modernized during disease outbreaks as markets, banks, and other services were closed. So, the only way to get money from abroad was for expatriates to send money to Nepal online.

What Are The Utilization Of International Money Transfers To Families In Developing Countries?

Over the last half-century, the Nepali economy has undergone an unusual structural change: labor migration out of agriculture has been caused by international employment opportunities rather than new jobs in industries or high-skilled professional services. Remittances sent home by migrant workers are projected to account for a quarter of all household income and almost two-thirds of revenue for those receiving money transfer to Nepal from abroad. Furthermore, through rising household spending in education and health, remittances have led to poverty reduction and human growth.

How Remittance Effect The Macro Level Businesses Amid Covid-19 Pandemic?

Remittances are an important stabilizer for the current account and the balance of payments at the macro level. International jobs have served as a labor market safety valve by absorbing a large share of new entrants. Covid-19’s spread has altered the situation. To control the spread of the virus, most Nepali migrant worker destination countries have implemented non-pharmaceutical steps such as lockdown and workplace closure, which have significantly disrupted economic activities and harmed well-being and employment.

Moreover, the Covid-19 crisis has stifled global oil production and caused a drop in oil prices, a significant income source for many migrant worker destination countries. Both the recipient and production countries of migrant workers have suffered as a result of this. Online money transfer to Nepal was the only source for migrants families and businesses to receive payments from abroad.