Nepal | July 03, 2020

Remittance inflow drops after almost four years

Central bank report shows BoP at a surplus of Rs 8.83 billion in first two months of fiscal

Himalayan News Service
Share Now:

Kathmandu, October 23

Inflow of remittance has dropped for the first time in four years, as per Nepal Rastra Bank (NRB).

The current macroeconomic report of the first two months of 2019-20 unveiled by NRB shows that the remittance inflow decreased by 0.3 per cent to Rs 153.73 billion in the first two months of this fiscal (from mid-July to mid-September) compared to an increase of 33.4 per cent in the same period of the previous year.

Sarita Bhatta, executive director at the Foreign Exchange Management Department of the central bank, said that remittance inflow was down after almost four years.

“We are yet to analyse the actual reason behind the fall in remittance. However, the remittance inflow may have decreased as the growth in outflow of migrant workers has been tepid in the recent months,” Bhatta said.

However, she said the remittance inflow may increase in the third month of the fiscal (mid-September to mid-October) as workers often send money home ahead of the festive season.

Similarly, the halt in the supply of migrant workers to Malaysia since almost one year has also been cited as the reason behind the fall in remittance.

As per the NRB report, the number of Nepali workers (institutional and individuals) that migrated for foreign employment increased 0.2 per cent in the review period.

Decline in remittance is often taken as a serious concern in economies like Nepal which are highly driven by remittance.

Meanwhile, country’s trade deficit narrowed 3.1 per cent to Rs 211 billion in the two months of 2019-20 fiscal year. While merchandise exports increased 25.9 per cent to Rs 18.5 billion in the two months of this fiscal compared to an increase of eight per cent in the corresponding period of previous fiscal, merchandise imports decreased 1.2 per cent to Rs 229.50 billion in the review period.

Similarly, the balance of payments (BoP) remained at a surplus of Rs 8.83 billion in the review period compared to a deficit of Rs 25.45 billion in the same period of the previous year. Based on the imports of two months of current fiscal, the foreign exchange reserves of the banking sector is sufficient to cover prospective merchandise imports of 9.6 months, and merchandise and services imports of 8.4 months, as per NRB.

However, year-on-year consumer price inflation stood at 6.16 per cent in mid-September against 3.86 per cent a year ago. Food and beverage inflation stood at 6.51 per cent, whereas non-food and service inflation stood at 5.89 per cent in the review month.


A version of this article appears in print on October 24, 2019 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Health Minister says 'Enough is Enough' campaign justifiable

KATHMANDU: Activists of 'Enough is Enough' campaign today held a discussion with the Minister of Health and Population, Bhanubhakta Dhakal, to draw the government's attention towards the demands put forth by the campaigners. They have insisted that the government take the demands seriously and ac Read More...

Sudurpaschim yet to discuss budget as opposition continues obstruction

DHANGADHI: Sudurpaschim Province has not been able to hold any discussion on budget even after unveiling it more than two weeks ago. The deliberation on budget could not proceed even after 17 days since the parties in opposition have been obstructing the Provincial Assembly meeting. Main oppositi Read More...

Novak Djokovic and his wife test negative for coronavirus

BELGRADE: Novak Djokovic and his wife have tested negative for the coronavirus, his media team said Thursday, 10 days after announcing they had contracted the disease. The top-ranked player tested positive for the virus after playing in an exhibition series he organized in Serbia and Croatia amid t Read More...

In Pictures: Protest against govt's ineffective response to COVID-19 crisis

Kathmandu, July 2 Youths hold placards while maintaining safe distance as they take part in a protest at Patan on Thursday demanding better and effective response from the government in handling COVID-19 outbreak. Read More...

PM Oli at HAMS hospital to take stock of health of activists on Satyagraha

KATHMANDU: Prime Minister KP Sharma Oli has visited the HAMS hospital to take stock of health of youth activists who have been staging a fast-unto-death Satyagraha for the last six days. Activist Iih along with others have been staging the Satyagraha demanding that the government correct its cour Read More...

Colombia sex workers

Thailand's migrant sex workers fear for the future

BANGKOK: Bua used to earn up to 40,000 baht ($1,300) a month as a sex worker in Thailand's northern province of Chiang Mai when the coronavirus forced entertainment venues to close, leaving her jobless. Since March, the 32-year-old single mother, who is Burmese, has racked up debts of more than 1 Read More...

Botswana investigating mystery deaths of 275 elephants

GABORONE: The number of elephants found dead in Botswana's Okavango Panhandle has risen to 275 from 154 reported two weeks ago, the government said on Thursday. Authorities are investigating the unexplained deaths over the past months. Poaching has been ruled out as the carcasses were found Read More...

Deepika Padukone champions #DobaraPoocho on importance of discussing mental health issues

KATHMANDU: Bollywood actor Deepika Padukone has urged to be a little more attentive towards their loved ones and repeatedly inquire about their life struggles and mental health issues, through a campaign #DobaraPoocho. Taking to her Instagram on June 30, 34-year-old actor posted a video about che Read More...