SYDNEY, 12 April, 2023: WorldRemit data shows Nepali migrants around the world are more likely to reach deep into their pockets to send money to communities and loved ones in Nepal in the month after Navavarsha.
In 2021, Nepalis around the world sent 86% more money home during the period of the Nepali New Year compared to the month after. And in 2022, Nepalis around the world sent 15% more money home during the Nepali New Year period compared to the month after.
Remittances play an important role in Nepal’s economy – figures from the World Bank show that almost a quarter (23%) of Nepal’s GDP comes in the form of remittance money which is sent home by Nepalis working abroad.
However, the WorldRemit statistics also show that remittances during the Nepali New Year period have been impacted by ongoing global inflation and the increasing cost of living, as well as market and dollar depreciation, COVID-19 recovery, and other economic issues.
As overseas migrants tightened their belts in 2022 to deal with the increasing cost of living, the amount of money sent home during the Nepali New Year period decreased slightly (-2%) year-on-year.
Samman Kunwar, a Nepali migrant and IT professional in Sydney who sends money home to his family in Nepal, answered to South Asia Times (SAT) questions on the subject vis Email. He talks about why he sends money home, what the remittances are used for by his family, and what this means for his community back home.The figures show that Nepali migrants around the world are more likely to reach deep into their pockets to send money to communities and loved ones in Nepal in the month after Navavarsha. Excerpts from the interview
Q – Why are so many Nepalese migrating to Australia?
A- Australia has become a popular destination for Nepalese in the past years. The reasons behind migration to Australia are diverse. Some of the reasons include better employment opportunities, access to quality education, better healthcare, and an improved standard of living. We also know that the Nepalese community is the fastest growing migrant community in Australia, and people tend to go where they have friends or family. So I guess that’s one of the reasons too why many Nepalese migrating to Australia, because we have a big Nepalese community here.
Q – Are Nepalese international students’ part of the migrants?
A- Yes, I’d say that Nepalese international students are a significant part of the Nepalese migrant population in Australia. Many Nepalese students come to Australia to pursue higher education and then choose to stay on to work and settle permanently. From my understanding, a migrant refers to someone who moves to other places in search of work or better living conditions, and this definition really speaks to international students too.
Q – Are families/relatives dependent on remittances from Australia?
A- Many families and relatives in Nepal do rely on remittances sent back home by Nepalese migrants in Australia. Remittances are a lifeline for families in developing countries like Nepal. Families or relatives in Nepal might not have the opportunities that migrants to Australia have, including strong job prospects and better pay.
Q – What is the popular method of transferring money to Nepal?
A- I personally think digital remittance services such as WorldRemit are the most popular way to send money nowadays as they are quick and safe.
Q – Any problems faced while transferring money to Nepal?
A- I think one of the biggest problems in transferring money to Nepal is making sure that the money arrives quickly and safely to your loved ones, with a reasonable fee. I know that hundi has been a popular way of sending money back home but my understanding is that this is not always the safest or most reliable method. For that reason, I prefer using well-known digital remittance services to send money home.
Q – Do you get a reasonable exchange rate etc when you transfer money to Nepal?
A- Exchange rates offered for transferring money to Nepal vary depending on the service provider. What’s important to remember is that the cheapest method is not always the best, fastest or safest. I always do my research, compare different options and then choose a provider that offers a reasonable exchange rate, low fees, and fast and safe transfers.
