10-month remittance above $20b
SIDDIQUE ISLAM | Monday, 3 May 2021
Despite the economic impact of the Covid-19 pandemic, the inflow of remittances crossed $20 billion mark in the first 10 months of this fiscal year (FY), registering an increase of nearly 39 per cent year on year, officials said.
The inward remittances soared to $20.65 billion during the July-April period of FY 2020-21, compared to $14.87 billion in the same period of the previous fiscal year, the central bank's latest data reveals.
In April 2021, Bangladeshis working abroad sent home $2.07 billion, up by $156.62 million from the previous month's level.
In March last, the remittances stood at $1.91 billion, while the figure was $1.09 billion in April 2020.
"We're expecting to receive a total of around $25 billion in remittances by the end of this fiscal year," Kazi Sayedur Rahman, deputy governor of the Bangladesh Bank (BB), told the FE.
The BB officials, however, said the inflow of remittances usually goes up before Eid-ul-Fitr festival every year.
The government's incentive coupled with pro-active attitude of some banks has helped drive the growth of inward remittances during the period under review, according to senior bankers.
They also expected that the existing upward trend may continue in the coming months as the government has continued to provide 2.0 per cent incentive to the beneficiaries against remittances and the exchange rate of Bangladeshi taka against the US currency remains stable.
The government's incentive is also encouraging the non-resident Bangladeshis (NRBs) to send their hard-earned money through banking channel instead of illegal "hundi" system, they explained.
Talking to the FE, Md. Ali Hossain Prodhania, managing director of Bangladesh Krishi Bank (BKB), said pro-active attitude of all the stakeholders along with technology-based service of some banks has helped achieve the higher growth of inward remittances, which may continue in the coming months.
The central bank had earlier took a series of measures to encourage the expatriate Bangladeshis to send remittances through formal banking channel, which helped boost the country's foreign exchange reserves.
Bangladesh's foreign exchange reserve rose to $44.90 billion on Sunday from $44.88 billion in the previous working day, said a central banker.