Staff Reporter

Kathmandu, Nov 1: Despite the surge of COVID-19, the money sent home by Nepali migrants in the two months (mid-July to mid-September) of the current fiscal year 2020/21 increased by 8.1 per cent.

According to the macroeconomic and financial report of Nepal Rastra Bank (NRB), remittance inflow rose to Rs. 165.73 billion in the review months compared to a decrease of 0.6 per cent in the same period of the previous year.

In the US dollar terms, remittance inflows increased by 2.6 per cent to USD 1.39 billion in the review period against a decrease of 1.6 per cent in the same period of the previous year.

Spokesperson and executive director of NRB Dr. Gunakar Bhatta said that remittance inflow had increased significantly over the months as migrant workers were forced to send money home only through the formal channels.

Due to closure of international flights in the wake of the COVID-19, migrant workers have sent their income home through the banking channels instead of bringing goods such as gold, silver and electronics while returning home, he said.

Stating that the rise in remittance inflow was in line with the global trend, he said that the inflow of remittance in the global market had started to increase from the month of June this year.

The remittance inflow in the global market had dropped significantly in March and April this year due to COVID-19 pandemic.

Bhatta said that manufacturing sector of Nepal’s remittance source countries including the Gulf had not been affected by the COVID-19 which contributed to increased inflow of remittance in the country.

According to NRB, the number of Nepali workers (institutional and individual-new and legalised) taking approval for foreign employment decreased by 99.2 per cent in the review period.

The number of Nepali workers (renew entry) taking approval for foreign employment decreased by 86.5 per cent in the review period. It had increased by 10.3 per cent in the same period of the previous year.

Similarly, the balance of payments (BOP) registered a surplus of Rs. 67.63 billion in the review period. Such surplus was Rs. 8.83 billion in the same period of the previous year.

In the US dollar terms, the BOP recorded a surplus of 566.2 million in the review period compared to a surplus of 78.5 million in the same period of the previous year.

Meanwhile, the current account remained at a surplus of Rs. 26.07 billion in the review period against a deficit of Rs. 22.69 billion in the same period of the previous year.

In the US dollar terms, the current account recorded a surplus of 217.6 million in the review period against a deficit of 200.3 million in the same period last year.

In the review period, capital transfer decreased by 33.7 per cent to Rs. 1.96 billion and net foreign direct investment (FDI) increased by 23.2 per cent to Rs. 2.44 billion.

In the same period of the previous year, capital transfer and net FDI amounted to Rs. 2.96 billion and Rs. 1.98 billion respectively.

Published on: 1 November 2020 | The Rising Nepal