Remittances into Nepal slowing down! But are they?

A recent news report on MyRepublica states that the remittances inflow to Nepal grew by just 10.5% and stood at Rs. 213.71 billion in 2009/10, even though the number of workers leaving for overseas jobs increased by more than 35%.

Last year Nepal recorded a strong 47% growth in remittance inflow. As remittance drives consumption and serves as the mainstay of the Nepali economy, slowdown in its receipt is feared to adversely affect the market and economy as whole. The Nepal Rastra Bank seems to have got it all wrong, stating that the slowed remittances inflow is because workers are sending less money back home than the past attributing this to the recent global economic slowdown.

But, those of us abroad know the real reason for this. :-) . We no longer use formal channels to send money home but rather opt to send our money through informal channels due to the better rates we get and the quicker service.