August 12: Remittance inflow to Nepal has been above average in the last two months despite projection of decline in remittance due to the Covid-19 crisis.
Preliminary data collected by Nepal Remitters Association show that the inflow of remittance to Nepal between mid-May to mid-July was above average inflow of remittance.
During normal situation, the average inflow of remittance to Nepal remains around Rs 73 billion per month. However, the remittance sent to Nepal between mid-June to mid-July was around Rs 80 billion. The figure was Rs 94 billion in the previous month (mid-May to mid-June).
The inflow of remittance had initially reduced after the government of Nepal as well as various other countries imposed lockdown in March to contain the spread of coronavirus. But there has been an improvement in the situation, according to remittance companies.
Data maintained by Nepal Rastra Bank show that the inflow of remittance to Nepal in mid-March to mid-April was Rs 34 billion and Rs 54 billion in mid-April to mid-May. Then onward, the remittance inflow has remained above average.
General Secretary of Nepal Remitters Association Ritesh Mittal says that people have started using legal channel to send remittance after the ‘hundi’ business collapsed during lockdown.
“Inflow of remittance has increased after a slump in the hundi business,” said Mittal.
Earlier, a large amount of remittance from the UK, Australia, the UAE and South Korea used to arrive here through the illegal hundi business. However, remittance companies say that people have started sending money from these countries through official channel.
It is also believed that the money which could not be sent during the lockdown period were sent in lump sum after the restrictions were lifted. This is also another reason for the encouraging result.
“The amount withheld during the lockdown is still in the process of transfer. That is the reason why the inflow of remittance was encouraging last month,” said Suman Pokharel, president of Nepal Remitters Association.