Remittance inflow up by 43pc in Jul-Oct

Bangladesh received nearly US$ 9.0 billion in remittances in the first four months of the current fiscal year (FY) despite the Covid-19 pandemic, officials said.

The inflow of remittances grew by more than 43 per cent to $ 8.82 billion during the July-October period of FY2020-21 from $ 6.16 billion in the same period of the previous FY, according to the central bank's latest statistics.

The money sent home by Bangladeshis working abroad amounted to $ 2.11 billion in October 2020, down by $ 39 million from the previous month's level.

In September last, the remittances stood at $ 2.15 billion. It was $1.64 billion in October 2019.

"We expect that the existing trend of inward remittance will continue in the coming months as the government has provided 2.0 per cent incentive on remittance receipts," Kazi Sayedur Rahman, executive director of the Bangladesh Bank (BB), told the FE.

Such incentive has encouraged the non-resident Bangladeshis (NRBs) to send their hard-earned money using the formal channels instead of informal ones, Mr. Rahman explained.

The BB's policy support has also contributed to achieve such higher growth of inward remittances during the period under review, according to the central banker.

The central bank has already relaxed the conditions for incentives on the money sent by expatriate Bangladeshis to lift up the sinking flow of remittances amid the pandemic.

Under the latest relaxation, the expatriate Bangladeshis can get 2.0 per cent incentive without showing any paper on remittance up to $ 5,000 or Tk 500,000. Earlier, the ceiling was Tk 150,000.

Besides, those sending more than Tk 500,000 will have two months to submit the papers instead of 15 days earlier.

The expatriates who have already sent money will also get the facilities. The benefit will remain effective until December 31, 2020.

Currently, 29 exchange houses are operating across the globe, setting up more than 1,300 drawing arrangements abroad, to expedite the remittance inflow, another BB official said.

The central bank earlier took a series of measures to encourage the expatriate Bangladeshis to send their money through the formal banking channel, instead of the illegal "hundi" system to boost the country's foreign exchange reserve.

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