More than a trillion remittances in 15 months consecutively

Fluctuations in the value of the US dollar have also affected remittances entering Nepal. Even though the remittances are less when the dollar is high, the Nepalese rupee is more visible. Similarly, when the value of the dollar is falling, there are many remittances coming in, but little is seen in Nehru. Therefore, while analyzing the remittance flow, the National Bank has been analyzing it separately in Nehru and Dollar. In recent months, remittances in dollars also seem to be increasing continuously.

Analyzing on a monthly basis, Rashtra Bank's data shows that more than one billion remittances have been received continuously in the last 15 months. According to this, remittances of 1 trillion 2 billion rupees were received in 079 November and 1 trillion 5 billion rupees in 080 January. Compared to last month, the remittance in January is less. In the last 15 months, the highest amount of remittances up to 1 trillion 37 billion rupees has been received in last October.

Nepal Rastra Bank Research Department Head Prakash Kumar Shrestha said that with the increase in the number of Nepalis going for foreign employment, remittances are continuously increasing. The demand for resources may also have decreased.''

Foreign exchange reserves, which were in a weak position a year and a half ago, have reached an all-time high due to a steady increase in remittances. The highest foreign exchange reserves in Nepalese rupees last November have also reached the highest level in US dollars since last December, according to which it reached 18 trillion 44 billion 94 billion rupees in January. In US dollars it is 13.89 billion. According to the monthly report of the National Bank, the foreign exchange reserves in US dollars were 11.71 billion at the end of June 2008, and increased by 18.6 percent to 13.89 billion by the end of January. As of last January, out of the country's total foreign exchange reserves, Nepal Rastra Bank has 16 trillion 23 billion 92 million rupees.

The share of Indian currency in the total foreign exchange reserves as of mid-January 080 is 22.6 percent. Rashtra Bank claims that the reserves up to January will cover 14.7 months of goods imports and 12.3 months of goods and services imports. The target was to maintain foreign exchange reserves sufficient to import goods and services for at least 7 months in the current financial year.

Out of the foreign currency received from various sources, the most 66.9 percent of the foreign currency has been received through remittances, according to the data of Rashtra Bank. It was 67.4 percent in the previous financial year. Analyzing the data of the last five years regarding the sources of foreign exchange, the contribution of remittances during that period is seen to be more than 60 percent on average. In recent years, the contribution of remittances to foreign exchange reserves has been increasing at a high rate.

10.3 percent through foreign loans, grants and diplomatic missions, 5.2 percent through commodity exports to foreign exchange reserves, 3.6 percent through tourism, 2.1 percent through the interest of foreign investments through the National Bank and 11.9 percent through other purposes. seems Experts say that the contribution of remittances to the total foreign exchange reserves is high and the dependence of the economy on remittances is increasing in recent years.

Although the remittances decreased a bit in January, the remittances increased in February and showed signs of increasing in March, said Chandra Tandon, president of the Remittances Association. "The number of Nepalis going abroad for work is also increasing, and the income (salary) they get abroad also seems to be increasing," he says, "Now many Nepalis have gone to developed countries including Japan, Korea, and America." Regular foreign exchange is coming in from those countries too.

Although the domestic economy remains sluggish due to fragile government finances, current account surpluses and current account surpluses are continuously increasing due to increasing remittances and decreasing imports. In this way, when the external sector is strong, the economists suggest that the government should increase the capital expenditure in a large amount to reduce the slackness of the internal economy.

The external sector continues to strengthen as remittances continue to rise and imports decline. This has given the government an opportunity to confidently invest more in infrastructure development. Therefore, experts say that the government should increase investment in infrastructure development. Seeing that, they say that investment from the private sector will also expand. About 80 percent of the investment is in the private sector. However, the current private sector is discouraged. In such a situation, the government, which has a 20 percent investment share in the economy, should encourage the private sector to invest by increasing spending. Mobilizing private sector resources also requires government efforts. Experts suggest that the government should work in this direction.

The number of Nepalis who have taken the final labor approval (institutional and individual-new) for foreign employment till January of the current financial year is 247 thousand 12 people. During the same period, 158 thousand 540 people have taken work permit again. 3 lakh 14 thousand 767 final work permit and 167 thousand 7 hundred 8 people received labor permit again in the last seven months of the last financial year.