40pc remittance comes thru' hundi
Tuesday, 16 December 2008
FE Report
About 40 per cent of the annual remittance sent by expatriate Bangladeshis reaches the country through unofficial channels.
This was revealed at a review meeting on remittance held in the Bangladesh Bank (BB) Monday.
The country officially received US$7.91 billion worth of remittance in fiscal 2007-08. But an amount of $3.2 billion is entering into the country annually through unofficial 'hundi' channel, said an official, who was present at the meeting.
The government expects to receive $10 billion worth of remittance through official channels if the current trend continues, he said.
BB governor Salehuddin Ahmed presided over the meeting, which stressed the need for further actions to increase remittance flow through the official channels.
One of the main reasons for the expatriates to take to unofficial channel is higher exchange rates available in the curb market compared with the official exchange rates, said the official.
But the central bank has already decided to keep the current exchange rate steady to bring down the inflation, now running at double digit.
The meeting, however, decided to take other options, including offering better services by reducing delivery charges taken by banks and money changers at home and abroad, added the official.
The representatives of eight local banks, attending the meeting as leading remittance delivers, have been asked to submit reports on the charges.
The BB will take further action after reviewing the charges, said the official.
The meeting also focused on some other issues such as enhancing welfare activities of the expatriates and investment facilities for them as remittance is Bangladesh's second-biggest source of foreign exchange earning after the ready-made garments that fetched $ 10.7 billion last fiscal.
The remittance plays a vital role in maintaining stability in the country's balance of payments and mitigating unemployment problems.
The country received $3.752 billion in remittance in the first five months of the current fiscal with a growth rate of 33.77 per cent over that of the corresponding period of last fiscal.
Donor agencies have, however, forecast a slide in inflow of remittance amid deepening global financial meltdown that might slowdown economics in Middle East countries too.
The forecast made by country's main development partner World Bank, which said the country's economy will grow between 4.8 per cent and 5.7 per cent for the current fiscal year due to the declining volume of remittances.
The country's economy grew 6.2 per cent in the last fiscal year.
About 40 per cent of the annual remittance sent by expatriate Bangladeshis reaches the country through unofficial channels.
This was revealed at a review meeting on remittance held in the Bangladesh Bank (BB) Monday.
The country officially received US$7.91 billion worth of remittance in fiscal 2007-08. But an amount of $3.2 billion is entering into the country annually through unofficial 'hundi' channel, said an official, who was present at the meeting.
The government expects to receive $10 billion worth of remittance through official channels if the current trend continues, he said.
BB governor Salehuddin Ahmed presided over the meeting, which stressed the need for further actions to increase remittance flow through the official channels.
One of the main reasons for the expatriates to take to unofficial channel is higher exchange rates available in the curb market compared with the official exchange rates, said the official.
But the central bank has already decided to keep the current exchange rate steady to bring down the inflation, now running at double digit.
The meeting, however, decided to take other options, including offering better services by reducing delivery charges taken by banks and money changers at home and abroad, added the official.
The representatives of eight local banks, attending the meeting as leading remittance delivers, have been asked to submit reports on the charges.
The BB will take further action after reviewing the charges, said the official.
The meeting also focused on some other issues such as enhancing welfare activities of the expatriates and investment facilities for them as remittance is Bangladesh's second-biggest source of foreign exchange earning after the ready-made garments that fetched $ 10.7 billion last fiscal.
The remittance plays a vital role in maintaining stability in the country's balance of payments and mitigating unemployment problems.
The country received $3.752 billion in remittance in the first five months of the current fiscal with a growth rate of 33.77 per cent over that of the corresponding period of last fiscal.
Donor agencies have, however, forecast a slide in inflow of remittance amid deepening global financial meltdown that might slowdown economics in Middle East countries too.
The forecast made by country's main development partner World Bank, which said the country's economy will grow between 4.8 per cent and 5.7 per cent for the current fiscal year due to the declining volume of remittances.
The country's economy grew 6.2 per cent in the last fiscal year.