Overcoming a threat to global remittances, the country's remittance inflow has witnessed a rapid growth to stand at $922 million in the first 10 days of September, up 72.66 percent over the same period of previous year amid the pandemic crisis.
This was $534 million in same period of previous year and $572 million in the same period in August this year.
An official of Bangladesh Bank (BB) said various time-befitting initiatives taken by the government have resulted in an increased awareness among expatriate workers to send their hard-earned money through legal channels, pushing up the remittance inflow.
The higher growth of remittance inflow now is attributed to a budget declaration of 2 percent cash incentive to remitters on inward remittance.
This will significantly increase the remittance inflow through legal channels and discourage the ‘hundi’ business, economists said.
The country’s remittance inflow has increased by 35.93 percent to $1.96 billion in August against $1.44 billion in the same period of the previous year amid the coronavirus pandemic.
Expatriates sent a record remittance of $2.60 billion from different foreign countries in July.
This is the highest monthly remittance received in the country’s history helping to push foreign currency reserves up to $39.04 billion.
Market analysts said expatriates have broken all previous records by sending the amount of money home. The remittance inflow was more than expected.
An economist said, “This is agood news that Bangladeshi expatriates are still sending remittances though millions of workers are toiling abroad amid insufferable conditions due to the fall in oil prices, coronavirus pandemic and other predicaments.”
Expatriates are virtually providing oxygen to our economy, he added.
Former World Bank lead economist in Dhaka, Zahid Hussain, told The Bangladesh Post that, “Cash incentive to remitters has helped boost the inward remittance.”
“We need to create skilled manpower for jobs abroad side by side exploring new job markets in the European region to increase remittance inflow further,” he added.
However, the country’s remittance inflow witnessed a record growth to touch a milestone of $18.20 billion in last fiscal 2019-20 despite a global economic recession amid the Covid-19 crisis. This inflow was 10.85 per cent higher than the previous fiscal year.
In fiscal (FY) 2018-19, the country’s remittance inflow stood at a record high of $16.41 billion, according to BB.
This inflow increased by about 9.5 per cent in FY19 from $14.98 billion in the previous fiscal.
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 and $14.98 billion in FY18 respectively.
More than 1.02 crore Bangladeshi expatriates are currently working in some 174 countries across the world.