The inflow of remittances grew by nearly 11 per cent to a record US$ 18.20 billion in the just-concluded fiscal year (FY) despite the ongoing Covid-19 pandemic, officials said.
The figure jumped from $ 16.42 billion in FY 2018-19, according to the central bank's latest statistics released on Thursday.
The government incentive and the latest policy support provided by the Bangladesh Bank (BB) have contributed to achieve the new record of inward remittances, according to the officials.
The remittances from Bangladeshi nationals working abroad were estimated at $ 1.83 billion in June last, up by $ 327.96 million from the previous month. In May 2020, the remittance stood at $ 1.50 million. It was $ 1.37 billion in June 2019.
"The June remittance set a new record in the history of Bangladesh," BB executive director Kazi Sayedur Rahman told the FE.
The country earlier received highest $ 1.75 billion in remittances in May 2019, the BB data showed.
The central banker expected the upward trend in inward remittances to continue in the current fiscal year as the government would continue with the 2.0 per cent incentive for remittance receipts.
"Our latest policy support has also helped boost the inflow of remittance in the recent months despite the Covid-19 outbreak across the world," Mr. Rahman explained.
The central bank has already relaxed the conditions for incentives on the money sent by the expatriate Bangladeshis, lifting up the sinking inflow of remittances amid the coronavirus pandemic.
Under the latest relaxations, the expatriate Bangladeshis will get 2.0 per cent incentives without showing any document against remittance receipts 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 documents instead of 15 days earlier.
The expatriate Bangladeshis who have already sent money home will also get the facilities. These will be effective until December 31, 2020.
Echoing with the BB's executive director, Md. Ali Hossain Prodhania, managing director of Bangladesh Krishi Bank (BKB), said the inflow of remittances might increase further this month and that would continue in the coming months due to the incentive being provided by the government.
"The inflow of remittance may increase significantly in July ahead of the Eid-ul-Azha," the senior banker predicted.
The central bank had earlier taken a series of measures to encourage expatriate Bangladeshis to send their hard-earned money through the formal banking channel instead of illegal "hundi" system in order to boost the country's foreign exchange reserves.
Bangladesh's foreign exchange (forex) reserve has already crossed US$ 36 billion-mark -- for the first time in its history, following lower import payment obligations and higher growth of inward remittance.
The forex reserve rose to $ 36.02 billion on June 30, setting a new record, from $35.93 billion of the previous working day, according to the BB's latest data. It was $ 26.14 billion on Thursday.
"Our forex reserve has crossed the $ 36 billion-mark following lower import payment pressure on the economy and upward trend of inward remittance recently," another BB official told the FE.
Foreign loans and assistances have also contributed to obtain the new record of foreign exchange reserve, according to the central banker.
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