Remittances cross $21b

The inflow of remittances crossed $21billion-mark for the first time in the just-concluded calendar year, registering an increase of nearly 19 per cent, despite the ongoing Covid-19 pandemic, officials said.
The flow of inward remittances jumped to $21.74 billion in 2020 from $18.33 billion a year ago, according to the finance ministry's latest statistics.
The money sent home by Bangladeshis working abroad amounted to $2.05 billion in December 2020, down by $27.52 million from the previous month's level.
In November last, the remittances stood at $2.08 billion. It was $1.69 billion in December 2019.
"We're expecting to receive a total of $24 billion in remittances by the end of this fiscal year," Kazi Sayedur Rahman, deputy governor of the Bangladesh Bank (BB), told the FE.
The government's incentive along with the competitive attitude of some banks has helped achieve the higher growth of inward remittances in 2020, according to senior bankers.
They also expect the existing trend of inward remittances may continue in the coming months as the government has continuously provided 2.0 per cent incentive to the beneficiaries against remittance and stable exchange rate of the local currency -Bangladesh Taka (BDT)-against the US currency.
Talking to the FE, M A Halim Chowdhury, managing director (MD) and chief executive officer (CEO) of Pubali Bank Limited, said the government's incentive is encouraging the non-resident Bangladeshis (NBRs) to send their hard-earned money using banking channel instead of illegal "hundi" system.
Pro-active attitude along with technology-based service of some banks has helped achieve the higher growth of inward remittances in the outgoing calendar year, according to Abu Reza Md. Yeahia, deputy managing director of Islami Bank Bangladesh Limited (IBBL).
Currently, 29 exchange houses are operating across the globe, setting up more than 1,348 drawing arrangements abroad, to expedite the remittance inflow, another BB official said.
The central bank had earlier took a series of measures to encourage the expatriate Bangladeshis to send their hard-earned money through the formal banking channel, instead of the illegal "hundi" system, which can help boost the country's foreign exchange reserves.
The country's forex reserve rose to $43.23 billion on Sunday from $43.17 billion in the previous working day.

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