According to the latest figures, remittance inflow in Nepal has increased by 37.3 percent. In the last 3 months, remittance has reached 242.1 billion. In the previous year, remittance inflation increased by just 2.6 percent. The government is itself restricting to send Nepali workers to Malaysia since some time period. Yet, why is the remittance amount increasing?
To some extent the role financial companies have increased and increase in the value of dollar plays an influential role. Suman Pokharel, Chief Executive Officer of IME explained , “After tightening the regulations of Money Laundering by the government, the provision of-Know Your Customer (KYC) a strict requirement of the financial institutions, the practices of illegal currency trading means of currency have reduced.” Therefore, remittances amount is much visible, transparently increased.
Likewise, the government come up with the provision of depositing the saving amount in Dollar Account of the individual immigrant worker rather than sending the amount directly to their family members. This has also helped track remittance figures more appropriately. Due to which the illegal bill traders have been discouraged. In the last 3 months, amount worth Rs 80 billion has increased via remittance to Nepal.
The Remittance amount received in US Dollar has also increased by 24.5 percent. Remittance inflation increased by 6.6% in the US dollar in the corresponding period of the previous year. According to the government officials, if illegal remittance comes to an end, 30 to 40 percent of the remittance amount will raise.