The country’s remittance inflow has witnessed a rapid fall to hit a record 31-month low as hard-working expatriates have shouldered many challenges abroad due to Coronavirus epidemic.
The remittance stood at $1.08 billion in last month, which was the lowest inflow in 31 months since September, 2017. The inflow was $856 million in September 2017.
The expatriates have sent $1.08 billion in April in 2020, down 24.63 percent over the same period of previous year, according to Bangladesh Bank data.
In April 2019, this figure was $1.43 billion. Economists said Coronavirus that has engulfed all sectors of the world has affected the country’s remittance inflow.
They said, this deadly virus has spread to different countries of the world, including China, Singapore, Malaysia, Italy, Canada, Japan, Hong Kong, the USA, Saudi Arabia and the UAE, which are major sources of remittance inflow for Bangladesh.
As a result, many expatriates from these countries have returned to Bangladesh which will surely cast a negative impact on the flow of remittance, they added.
On the other hand, some expatriates have faced different difficulties, including fund crisis, as most of the countries have been put on lockdown to fight against Coronavirus, they informed.
Eminent economist Zahid Hussain told The Bangladesh Post that most of the unskilled workers of Bangladesh working in the middle-Eastern countries fear to lose their jobs as many companies have temporary closed their establishments while many small businessmen are passing critical time following Coronavirus scare.
On the other hand, many expatriates have returned to Bangladesh side by side some new visa holders cannot go abroad for lockdown in most countries which may create a negative situation in the flow of remittance, Hussain mentioned.
Islami Bank deputy managing director, Abu Reza Mohammad Yahia said, “The remittance is known as the best indicator of economy of Bangladesh, but expatriates’ income has decreased due to corona.”
Expatriates in the Middle East are still sending income to support their families at home, he said adding that it is uncertain how long the remitters will be able to send money.
“We have continued to distribute remittances through branches and agents”, he informed.
However, the country’s remittance inflow witnessed a rising trend to stand at $13.78 billion in first nine months in fiscal year 2019-20.
This inflow increased by 16.14 percent during the time comparing the same period of time last year, which was $11.86 billion, according to Bangladesh Bank.
Market analysts said, the remittance inflow has mainly increased for two major reasons-- strong dollar rate against dollar and providing 2 percent cash incentive by the government to remitters.
However, Bangladeshi expatriates sent home $1.60 billion in July, $1.44 billion in August, $1.48 billion in September, $1.64 billion in October, $1.55 billion in November and $1.69 billion in December in 2019 as well as $1.64 billion in January, $1.45 billion in February and $1.28 billion in March in 2020 respectively.
In the yearly basis, remittance came at $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.
Earlier, 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’.
Besides, the government is working hard and taking various activities locally as well as abroad to boost remittance inflow.