The flow of remittances into Bangladesh dropped substantially by 14.48 per cent or US$2.16 billion in the just-concluded fiscal year (FY), as various promotional measures hardly delivered.
According to the central bank statistics released Sunday, the inward flow of remittances ebbed down to US$12.77 billion in the FY 2016-17 from $14.93 billion a year before.
"The inflow of remittances decreased significantly in the last fiscal following slower development activities in the Middle-East countries due to lower prices of fuel oils on the global market," a senior official of the Bangladesh Bank (BB) told the FE while explaining the latest trend in remittance inflows.
A rising trend in sending hard-earned money by expatriate Bangladeshis using informal channels along with conflict situation in the Middle East also pushed down the flow of inward remittances, according to the central banker.
The Middle-Eastern countries are still the main sources of remittances for Bangladesh, the BB official added.
He also said the central bank as well as the government has already taken different measures to revamp the remittance inflows.
As part of the measures, the banks have been instructed to open 'help desk' at each branch concerned for ensuring better remittance services.
The BB has also asked the banks to take measures for improving the quality of remittance services so that the Non-Resident Bangladeshis (NRBs) send their hard-earned money home through formal channel.
Talking to the FE, another BB official said the flow of inward remittances improved slightly in the final quarter of the FY 17 following the innovative measures.
The remittance receipts stood at $3.57 billion in the April-June period of the FY 17 against $3.03 billion three months ago, the BB data showed.
"We're still working to increase the flow of inward remittance through taking innovative measures," the central banker said, without elaborating.
Meanwhile, the remittances from Bangladeshi nationals working abroad were estimated at $1.21 billion in June 2017, down by $53 million from the level of the previous month.
In May last, the remittances stood at $1.27 billion. The amount was $1.46 billion in June last year.
"The flow of inward remittances increased slightly in the months of May and June for celebration of the Eid-ul-Fitr festival," the central banker explained.
Currently, 29 exchange houses are operating across the globe, setting up 1,155 drawing arrangements abroad, to expedite the remittance inflow, according to the BB officials.
They expect that the flow of inward remittance will improve in the ongoing fiscal year following the different initiatives.
The central bank earlier had taken a series of measures to encourage the expatriate Bangladeshis to send their money through formal banking channels, instead of illegal 'hundi' system, to help boost the country's foreign-exchange reserves.
Bangladesh counted a 2.52 per cent fall in inward remittances in the FY 17 because of slower development activities in the Middle East.
The inflow of remittances came down to US$14.93 billion in the FY 16 from $15.32 billion a year ago.
In the FY 14, the inflow of remittances declined by 1.59 per cent to US$14.23 billion from $14.46 billion of the previous fiscal, the BB data showed.
But the money sent by the wage-earners figured higher at $15.32 billion in the FY 15, marking a 7.65 per cent growth over the previous fiscal.
siddique.islam@gmail.com
