Close  

Nepali migrant workers send home over US$7 billion

/ 11:10 AM September 04, 2019

In this photograph taken on May 9, 2015, Nepalese migrant workers stand with their luggage at Tribhuvan International Airport in Kathmandu, after returning from The United Arab Emirates. AFP FILE PHOTO

KATHMANDU — Nepali migrant workers’ remittances swelled by 16.5 percent to Rs879.27 billion ($7 billion) in the last fiscal year despite the decline in the number of outbound workers. In 2017-18, the annual rise in the remittance inflow stood at 8.6 percent.

According to the latest macroeconomic report released by Nepal Rastra Bank, the country’s central monetary authority, the money sent back by Nepali migrant workers in different countries totalled Rs879.27 billion during the period mid-July 2018 to mid-July 2019.

ADVERTISEMENT

The report shows that there was a drop of 32.6 percent in the Nepali workers who went overseas for employment during the review period. It had decreased 9.3 percent in the previous year. Remittance has been the main source of foreign currency for the country to maintain the adequate amount of foreign exchange reserves. Nepal Rastra Bank statistics showed that the remittance amount however increased by 7.8 percent in US dollar terms, compared to 10.2 percent in the previous year.

Despite double-digit growth in remittance inflows, the country, however, struggles to manage the foreign currency reserve due to the swelling trade deficit. During the review period, the country’s total trade deficit widened 13.5 percent to Rs.1321.43 billion.

FEATURED STORIES

According to Nepal Rastra Bank statistics, the country’s foreign currency reserves as of mid July this year stood at $9.50 billion, down from $10.08 billion in mid-July 2018. The share of the Indian currency in total reserves stood at 23.6 percent.

The widening trade gap has also hit the country’s balance of payments. Balance of Payments remained at a deficit of Rs.67.40 billion in the review year compared to a surplus of Rs960 million in the previous year.

The overall inflow-outflow of the financial transaction recorded a deficit of $591 million in the review year compared to a deficit of $1.1 million in the previous year.

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Asia, Business, economy, Labor, Nepal, Remittances
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.