Despite worsening Covid-19 pandemic situation around the world, remittance inflow in the country hit a record growth to touch a new milestone and will cross $25 billion for the first time in the fiscal year 2020-21, experts hope.
They said expatriates are continuously sending money at home despite the coronavirus pandemic as the government has provided various supports to the remitters including 2 percent additional cash incentive.
As a result, this remittance inflow is considered as oxygen to the country’s economy, they added.
However, the remittance inflow crossed $24 billion to stand at $24.42 billion till June 24 in the current fiscal year, up 34.16 percent over the previous fiscal year (FY 2019-20) amounting to $18.21 billion, according to Bangladesh Bank (BB) latest data.
Recently, the expatriates have sent more money at home to meet higher family expenses including for Eid festival and for the treatment expenses in the second wave of coronavirus pandemic, which pushed remittance up this month, economists said.
Finance Minister AHM Mustafa Kamal told the reporters on Saturday (June26) that the foreign currency reserve is nearing $46 billion, the inward remittance flow has reached around $25 billion which was $18 billion last year.
Dr Atiur Rahman, former Bangladesh Bank governor, told Bangladesh Post, “Expatriates are virtually providing oxygen to our economy despite they have faced many difficulties due to coronavirus pandemic.”
“The central bank has taken several initiatives, that includes providing remittance to the receivers easily, buying dollars directly from the market with a view to keeping a stable forex market and so on. These initiatives encouraged expatriates to send their money through legal channels,” he added.
The central bank is helping to keep the exchange rate stable by buying extra dollars from the market, even though the Taka is expected to strengthen against the dollar due to increased foreign exchange reserves, he added.
More than 1.02 crore Bangladeshi expatriates are currently working in some 174 countries across the world.
