The country’s remittance inflow has witnessed a new record at $957 million in the first 15 days this month, a Bangladesh Bank official said.
This flow will continue for the rest of the month as expatriates showed more interest to send money through formal channel, he said.
Finance Minister AKH Mustafa Kamal said, “The remittance flow is increasing day by day. Everyone appreciated it.”
He said, “The mind of expatriates are changing. They are like to send money through banking channel instead of illegal ‘Hundi’.”
The government is giving 2 percent cash interest on money remitted by expatriate Bangladeshis to remove the burden of increased expenses in sending remittances, he added. Even the government is not asking any question when sending remittances through formal channel, which will be considered as tax free investment, he said.
He also said, I have a lot of gratitude to the expatriates who are contributing more to develop our economy by sending remittance.
The Finance Minister expects that the inflow of remittance may stand at $20 billion in ongoing fiscal year 2019-20.
The country’s remittance inflow has stood a new record at $18.32 billion at the end of 2019.
This inflow increased by 17.88 percent or 2.78 billion during the time comparing the same period of time last year, which was $15.54 billion, according to Bangladesh bank.
Market analysts said, “The government has started giving 2 percent cash incentive on money remitted by expatriate Bangladeshis to remove the burden of increased expenses in sending remittances.”
It will encourage expatriates to send money through legal channels instead of ‘Hundi’, they said adding that the government is working hard and taking various activities locally as well as abroad to boost remittance inflow.
Besides, depreciation of the local currency against the US dollar has also pushed the inflow of remittances up in the recent months, they mentioned.
However, the local currency Taka depreciated by Tk 1 against US dollar in the inter-bank forex market during the last year.
The greenback was quoted at Tk 84.90 each in the inter-bank market on Thursday against Tk 83.90 in January 02.
However, Bangladeshi expatriates sent home $1.59 billion in January, $1.32 billion in February, $1.46 billion in March, $1.43 billion in April, $1.75 billion in May, $1.37 billion in June, $1.60 billion in July, $1.44 billion in August, $1.48 billion September, $1.64 in October, $1.55 billion in November and $1.69 billion in December in 2019 respectively.
BB officials said remittance inflow increased at a record high last fiscal and continued, which is good news for them.
They said, “We expect that the upward trend of inward remittance would continue in the coming months as the government has announced 2.0 percent incentive for remittance receipts.”
The government has already allocated BDT 30.60 billion as incentive in the budget for the current fiscal (FY), 2019-20, to encourage the expatriate workers to send their money through legal channels, they added.
However, Bangladeshi expatriates sent home $11.65 billion in FY11, $12.84 billion in FY12, $14.46 billion in FY13, $14.23 billion in FY14, $15.31 billion in FY15, $14.93 billion in FY16, $12.77 billion in FY17, $14.98 billion in FY18 and $$16.42 billion in FY19 respectively.