Remittance hits record high of $24.78 billion in FY '21

The inflow of remittances grew by 36.10 per cent to a record high of US$24.78 billion in the just-concluded fiscal year (FY) despite the ongoing Covid-19 pandemic, officials said.
Remittance increased by $6.58 billion to $24.78 billion in FY 2020-21 from $18.20 billion in FY 2019-20, according to the central bank's latest statistics released on Monday.
"We've received nearly $25 billion as remittances in the outgoing fiscal year mainly due to cash incentives provided by the government," Kazi Sayedur Rahman, deputy governor of the Bangladesh Bank (BB), told the FE while replying to a query.
He also said the BB's policy support and use of mobile financial services (MFS) for distribution of remittances across the country have also helped achieve such a higher growth of inward remittances.
The money sent home by Bangladeshis working abroad amounted to $1.94 billion in June 2021, down by $230.21 million from the previous month.
In May last, the remittances stood at $2.17 billion. It was $1.83 billion in June 2020.
"The inflow of remittances may increase in July ahead of Eid-ul-Azha," Mr. Rahman predicted.
The inflow of remittances usually increases before two Eid festivals each year.
Senior bankers as well as the BB officials, however, expressed the hope that the upward trend in remittance would continue in the coming months as the government is providing a 2.0 per cent incentive for remittance receipts.
Talking to the FE, another BB official said: "Our policy support has also helped in boosting the flow of inward remittance in recent months despite the spread of Covid-19 almost across the world."
Under the latest relaxations, the Bangladeshi expatriates 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.
Currently, 29 exchange houses are operating across the globe, setting up 1,452 drawing arrangements abroad, to expedite the remittance inflow, according to the central banker.
The government's incentive is also encouraging non-resident Bangladeshis (NRBs) to send their hard-earned money through banking channel instead of illegal 'hundi' system, a senior official of a leading private commercial bank (PCB) said.
"Transactions through 'hundi system'-an illegal cross-boundary financial settlement-have almost stopped because of the ongoing Covid-19 pandemic," the private banker explained.
Md. Ali Hossain Prodhania, managing director of Bangladesh Krishi Bank (BKB), said the existing trend in inward remittance may continue in FY 2021-22 for providing incentives by the government.
"Stakeholders are continuously trying to collect more remittances through formal channel," Mr. Prodhania said while predicting the inflow of remittances in FY'22.
The central bank had earlier taken a series of measures to encourage Bangladeshi expatriates to send their hard-earned money through formal banking channel instead of illegal 'hundi' system which can help boost the country's foreign exchange reserves.
Bangladesh's foreign exchange reserves rose to $46.43billion on Monday from $44.39 billion on the previous working day, according to the BB officials.

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