The flow of inward remittances grew by nearly 42 per cent to a record high of US$ 2.60 billion in July over that of the previous month, following celebration of the Eid-ul-Azha festival.
Remittances from Bangladeshi nationals working abroad in the first month of the current fiscal year (FY), 2020-21, were up by 766.93 million of a month before (June), according to the central bank's latest statistics.
It was $1.60 billion in July 2019.
"The remittance inflow in this July has set a new record in the country's history," Kazi Sayedur Rahman, executive director of the Bangladesh Bank (BB), told the FE.
Bangladesh earlier received the highest amount of $1.83 billion as remittance in June 2020, the BB data showed.
The government's incentive providing along with the central bank's latest policy support has helped the country to achieve the new record of inward remittances, according to officials and bankers.
Non-resident Bangladeshis (NRBs) normally send increased amount of remittances for their relatives and families in the country to celebrate the two Eid festivals.
Mr. Rahman also said the flow of inward remittances may slow down in this month.
"We've to wait until September to predict the future trend of inward remittances," he added while replying to a query.
Meanwhile, the central bank has projected that the flow of inward remittances might grow by nearly 3.0 per cent to $18.75 billion in FY 2021 from $18.20 billion of the previous fiscal, according to its latest monetary policy statement (MPS).
"Despite the economic slowdown in most of the remittance source countries, the government's 2.0 per cent cash incentive was instrumental to achieve a 10.9 per cent growth of inward remittances in FY '20, which was reasonably higher than the 9.6 per cent growth recorded in FY '19," the BB explained in the MPS, released on July 29.
However, available information indicates that employment of the Bangladeshi workers and professionals abroad has dropped sharply in 2020. Many overseas workers have already become jobless due to worldwide breakout of the Covid-19 pandemic, it added.
"And as such the growth of inward remittances might not be sustainable, unless the ongoing pandemic situation in the host countries improves fast," the central bank noted.
Talking to the FE, Md. Ali Hossain Prodhania, managing director of Bangladesh Krishi Bank (BKB), said July was a month of festival that helped the country to achieve the highest amount of remittances.
"The government's incentive along with the BB's policy supports has contributed to achieving the new record of inward remittances," the senior banker explained.
The central bank has already relaxed the conditions for providing incentives on the money sent by expatriate Bangladeshis to lift up the sinking flow of remittances amid the coronavirus pandemic.
Under the latest relaxations, the expatriate Bangladeshis can get 2.0 per cent incentives without showing any paper for incentives 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 their papers instead of 15 days earlier.
The expatriates who have already sent money will also get the facilities. These facilities will remain effective until December 31, 2020.
Meanwhile, the country's foreign exchange (forex) reserve rose to $37.43 billion on Tuesday, setting a new record, from $37.29 billion of the previous working day.
Lower import payment obligations and higher trend of inward remittances have contributed to achieving the new record of forex reserve, according to the BB officials.
They also said foreign loans and assistances have also helped the country to obtain the new record of forex reserve.
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