The country’s total inward remittances had increased almost four times to hit a record of more than Nu 8bn last year. The monthly statistical bulletin for March 2021 shows that it is a significant increase from over Nu 2.6bn in 2019. As per the RMA’s annual report 2020, the sharp spike in inward remittances in 2020 may be attributed to the increasing number of overseas returnees due to the outbreak of COVID-19, who have remitted their savings back to Bhutan.
As per the press release from the world bank last year, it predicted that the global remittances are projected to decline 14 per cent by 2021 due to the economic crisis induced by the COVID-19 pandemic. It also said that Remittance flows to low and middle-income countries were projected to fall by 7 per cent in 2020, followed by a further decline of 7.5 per cent in 2021. However, Bhutan has experienced it otherwise. With the growth of remittances which has been growing significantly since its inception in Bhutan, it has in fact recorded a growth of nearly 112 per cent last year compared to the previous year.
With the increase in the remittance inflow, the statistics maintained at the RMA also showed that, by the end of October last year, the number of accounts opened through the Remit-Bhutan grew by 19.6 per cent.
“Because of the pandemic, many countries saw inconveniences, especially on the economy. So our people studying and working abroad might have thought that if they deposit a huge amount of money in the bank there and if that country’s economy goes to consistent recession or if their financial market crumbles, their money is not safe there. Rather it is safer here. We have no such study conducted but this is what I felt personally,” said Namgay Tshering, the Finance Minister.
The majority of transactions were remitted from Australia followed by countries like the United States and the Middle East.
In order to encourage remittances in Bhutan, the RemitBhutan platform was officially launched in 2016. It is a platform to facilitate non-resident Bhutanese for non-face-to-face foreign currency account opening with an authorised bank in Bhutan. Remittance inflows help in building foreign exchange reserves.
Samten Dolkar
