3 years ago
The impact of COVID-19 on remittances to Nepal in the current fiscal year has not been seen. The remittances received in the last fiscal year as well as the previous fiscal year have been analyzed to see the current situation as having no effect of Covid.
Remittances to Nepal were expected to decline by 10 to 15 percent due to the Covid-19 epidemic. However, remittances declined by 0.5 percent in Nepali currency and about 3 percent in US dollars in the last fiscal year.
According to NRB, remittance of Rs. 875 billion has entered Nepal in the last fiscal year. Compared to the previous fiscal year, it is 0.5 percent less in Nepali currency and 3.3 percent less in US dollar. In the previous fiscal year, the country had received Rs 879 billion through remittances. That's an increase of about 16 percent.
Remittances of Rs 34 billion came to Nepal in the month of Chaitra, when lockdown started. This was linked to the effect of Covid-19. Because remittances of around Rs 79 billion had come in last Falgun. But in the following months, remittances began to increase.
Accordingly, remittances of Rs 53 billion were received in Baishakh, Rs 94 billion in Jestha and Rs 101 billion in Asar. Gunakar Bhatta, spokesperson of NRB and head of research department, said that the remittances to Nepal have been less affected as the economies of oil producing countries and Gulf countries have not declined as expected and the impact of COVID in the productive sectors of those countries has been less. "China's economy was expected to decline sharply because of Covid.
However, China quickly controlled Covid, 'he said, adding that' demand for goods and services in the world market has not declined as China's economy has not declined as expected. '
He said that remittances have not decreased much as many people who went for foreign employment in countries other than India have not returned. "Countries with large economies, including the United States, have not been able to cope for a long time and reopened after Covid," he said. That had a positive effect on remittances. '
NRB had also estimated that remittances could decline by more than 10 percent after the lockdown in Nepal. They had speculated that Covid had a huge impact on major remittance-sending countries.
Chairman of the Nepal Remittance Association, Suman Pokharel, said that the amount coming from the formal system has increased due to the decline in the activities of illegal means of sending remittances including hundi."During this period, there seems to be a decrease in hundi and other illegal trade," he said.
He also said that the impact of Covid on remittances is yet to be seen.
Chandra Tandon, vice-president of the Nepal Remittance Association, claims that the remittances have not decreased due to the reduced illegal trade of gold and reduction in hundi due to the lockdown.
"The remittances may have come from the banking system after the decline in hundi transactions," he said, adding that remittances would also be affected depending on how long the risk increases.
