Ramchandra Giri

I sent money home as my family can get more rupees with the same amount of US dollars

Aise in the exchange rate of the US dollar vis-à-vis the Nepali rupee has delighted Nepali migrant workers here as the value of the remittance they are sending back to their families has swelled. Sandip Gurung of Bhoteodar, Lamjung rushed out of a crowd near a remit office in Kotaraya and phoned home from a nearby remit office to inform his family that he was sending money. “I sent money home as my family can get more rupees with the same amount of US dollars,” he said. In recent months, the Nepali rupee has plunged against the greenback with the exchange rate going over Rs 90. This has encouraged many Nepalis working here to send money home so that their families can receive more in Nepali currency. Furthermore, the Malaysian currency ringgit has been strengthening against the greenback over the last five months, which means Nepali workers profit when they convert their salaries into US dollars.

The ringgit has strengthened against the US dollar in recent months with the exchange rate rising from 3.10 ringgits per US dollar five months ago to 3.20 ringgits presently. The appreciation has pushed up the value of the Malaysian currency to Rs 28.50 per ringgit. “I had only 500 ringgits in my pocket. When I saw that the ringgit had increased to Rs 28.50, I thought it would be good to send money home,” a migrant worker said. As a result of the rupee sliding against the greenback, Nepali workers who were earning Rs 12,000 monthly some eight months ago are now earning Rs 16,000 in rupee terms.

Remittance companies here said that Nepalis who had saved their money in Malaysian banks have been withdrawing their deposits to send home to their families. The weakening of the Indian rupee against the dollar contributed to the weakening of Nepali rupee, as the Nepali currency’s peg with India’s. Although the weakening of the Nepali currency has contributed to the rise in prices of goods imported from third countires (other than India), it has been a golden opportunity for migrant woarkers to send money home.

Many Nepalis working here send money home on a rotation basis with their friends. “Last time, my roommate sent money home after receiving his salary for June,” said Rajkumar Giri of Gorkha. “It is my turn to send money home after receiving the salary for July.” As a result of the increased flow, the value of the remittance is expected to reach as high as Rs 331 billion in the last fiscal year, according to the Economic Survey 2011-12. The Malaysian government estimates that there are around 300,000 Nepalis working in the country.

Published on: 11 August 2012 | The Kathmandu Post