Uptrend of remittance inflow

Remittance is the life-blood of our national economy and the contribution of remittance inflow is increasing significantly. Remittance is being used for many purposes of nation-building and gross domestic product (GDP) growth.

An encouraging report was recently released by the Bangladesh Bank (BB) that the flow of remittances grew by 9.65 per cent to a record US$ 16.42 billion in the just-concluded fiscal year (FY) 2019 as the exchange rate of local currency weakened against the US dollar which jumped from US$ 14.98 billion in FY 2017-18. The report also stated that strengthening supervision and monitoring by the central bank to check illegal 'hundi' transaction had contributed to the increased flow of remittances.

Bangladesh received US$ 12.77 billion in remittance in FY '17 and US$ 14.93 billion in FY '16. The BB expects that the upward trend in inward remittance will continue in the current fiscal year as the government has announced 2.0 per cent incentive for remittance receipts.

The government has already allocated Tk 30.60 billion as subsidies in the budget for this fiscal year to encourage expatriate workers to send their money through legal channels and definitely it will boost up the remittance inflow in the coming days.

It is true that most of the banks are now trying their best to increase the flow of inward remittances from different parts of the world through establishing drawing arrangements with overseas companies. These banks are trying desperately to increase the flow of inward remittances to meet their own import payment.

The remitters who stay abroad work hard to earn foreign currency. Our government is encouraging them to send more remittances through formal channel. The foreign missions of Bangladesh are not sincere enough to the remitters living in overseas countries. When they come back to Bangladesh, they explain their bitter experiences to their near and dear ones.

We have millions of expatriate workers. If they can remit their hard-earned money through formal channels, then the economy will greatly benefit.

We have seen upward remittance inflow due to exchange rate, various measures to curb informal 'hundi' system, workers' job status, and economic conditions of employing countries etc. Our government should monitor the causes of remittance inflow regularly and take pragmatic steps to continue the buoyant remittance inflow in the coming days.

Md Zillur Rahaman

Satish Sarker Road

Gandaria, Dhaka

zrbbbp@gmail.com