13 Nov 2024
Nepal mainly depends on the remittances of the more than 3 million Nepalese who live abroad. For example, remittances to Nepal totaled around USD 11 billion in 2023, representing over 26% of the nation's GDP and surpassing the combined inflow of foreign direct investment and official development aid. If you are also a Nepalese expat who regularly makes a money transfer from Belgium to Nepal, read this blog to learn the recent trends and future outlooks regarding remittances to Nepal.
An important day in Nepal and throughout the world to honor the sacrifice and generosity of migrants worldwide is the International Day of Family Remittances (IDFR), recognized by the UN General Assembly in 2018 and observed on June 16 every year.
Through remittances, more than 200 million migrants currently support their communities, countries, and more than 800 million family members. Over USD 5 trillion is expected to be sent home by migrants in low- and middle-income nations by 2030, mostly helping rural regions, where 80% of the world's poor live amid food shortages and the effects of climate change.
The significance of financial digitization in lowering remittance costs and enhancing financial inclusion is emphasized by the 2023–2024 IDFR report.
Digital Remittances towards Financial Inclusion and Cost Reduction were the top factors discussed at this event. The Sustainable Development Goal (SDG) objective of less than 3% was already achieved in 2022 when 90% of Nepalese people utilized different formal financial products, including digital ones, which helped lower remittance costs to 3.7%.
Despite some advancements, Nepal still faces challenges in its quest for universal financial access. For instance, financial inclusion is 50% in rural areas compared to 60% in urban areas. Moreover, the gender gap in financial access has narrowed, but it still exists. Finally, many expats who wish to send money to Nepal from Belgium face high fees for small-amount remittances. This deters informal remitters (10.4% of Nepalese adults) from using formal channels, and there is limited digital and financial literacy, resulting in lower retention of remittances in banks.
The pattern of remittance growth is influenced by social and cultural variables in Nepal. Remittances are what have kept Nepalese people alive, and supporting one's family is deeply rooted in their culture. The increase in traditional homes hasn't lessened the sense of duty, and many Nepali workers abroad prioritize making ends meet financially for their parents, siblings, and kids.
Additionally, the popularity of online money transfer services has made it easier for Nepali workers to send money to Nepal safely and on time. The advancement of technology has reduced the risk and difficulty of conventional money transfer techniques.
Read more: Exploring the Surge in Nepal's Remittance Inflows: Trends & Factors
Here are some helpful pointers to maximize your money transfers to Nepal.
Don't assume that the first service you come across is the only one you can use. You should compare the exchange rates and fees offered by various services. To find the offers that benefit you, you can utilize online tools. You will be surprised to know how much of a difference this makes in your online money transfer from Belgium to Nepal.
There are occasionally periods when money transfers are most popular, such as during Nepali holidays like Dashain and Tihar. This might lead to somewhat higher prices or longer turnaround times.. It is important to arrange the transaction a little sooner than anticipated if you want a money transfer during such occasions.
Utilizing ACE Money Transfer's services makes a secure, effective, and comparatively less expensive money transfer possible. Therefore, picking the correct service provider may greatly boost the value of transfers and give all the comfort that is required. Sign up for ACE today for free and send money online to Belgium from Nepal in a hassle-free and smooth manner.
Exchange rate changes can significantly impact the total amount received by beneficiaries in Nepal.
Yes, economic downturns in Belgium could reduce the earning potential of Nepali workers, thus impacting remittance flows.
Remittances sent to Nepal are typically not taxed, but it's important to check for any applicable local tax laws in Belgium.
The Nepali government has introduced incentives such as reduced fees and better exchange rates for formal remittance transfers.
Belgium’s strict anti-money laundering regulations ensure secure and transparent remittance transfers, which can slightly increase processing times. These regulations provide security and reliability for those needing to make an online money transfer from Belgium to Nepal, ensuring that funds reach their destination safely and compliantly.
