Thursday, 28 September, 2023

Remittance tumbles by 7.6 per cent amid liquidity shrink


By TRN Online, Kathmandu, Nov. 16: The amount of remittance of the first three months of the current fiscal year (FY) has decreased by 7.6 per cent in comparison to the same period of the previous FY.

According to the "Current Macroeconomic and Financial Situation of Nepal" released by Nepal Rastra Bank, the remittance has slid to Rs. 239.32 billion in the review period down from Rs. 258.91 billion of the same period in the previous FY.

Although the trend of Nepali workers moving abroad is rising, its fruits have yet not been reflected in this first quarter. The data showed that the rise in the workers flying for foreign employment is gaining momentum. This report showed that the number of Nepali workers (institutional and individual-new and legalized) taking approval for foreign employment increased significantly to 66,316 in the review period from the previous FY when 1880 took the approval. Also, the number of people taking approval to renew entry visas increased significantly to 34,823 in the review period up from 10,894 in the previous FY.

Remittance is a crucial source of liquidity for the Nepali economy. The dismal figure of remittance inflow in the circumstance of austerity of liquidity in banks and financial institutions has added up a new challenge to the financial sector.