The remittance inflow has bounced back with expatriates sending more money to their families ahead of Ramadan.
Remittance inflow has increased to stand at $1.43 billion in the first 24 days in March 2022 because of the raised cash incentive to remittance senders.
This important index of the economy increased in last December and January after declining for five consecutive months (July-November 2021).
However, this inflow stumbled again last February. Expatriates sent $1.49 billion in February.
Till 24th of March, the expatriates living in different countries sent almost the same amount of remittances that came in February.
In December and January, remittance was $1.63 billion and $1.70 billion respectively.
Serajul Islam, executive director and spokesperson of the Bangladesh Bank, told Bangladesh Post, “Ramadan will start in a few days. During Ramadan, people spend extra on some essential purchases. Sending extra money to the family for that extra purchase. That is why remittances are increasing.”
He expects at the end of the month, remittances will reach $2 billion. There are two Eid festivals ahead, he said, adding that remittances will increase in the coming days.
Economists and bankers said that since the first day of the New Year, the government has increased the cash incentive for remittances from 2 percent to 2.5 percent.
This has had a positive effect on this index, they said, adding that more remittances are coming from the Middle East countries as the economy of the Middle East has recovered due to the increase in the price of fuel oil in the world market.
To increase the flow of remittances, the government was providing cash incentives at the rate of 2 percent from the fiscal year 2019-20.
From January 1, 2022, it has been increased to 2.5 percent.
About 1.15 crore expatriates living in different countries play an important role in the country's economy by sending remittances. The contribution of remittances to the country’s GDP is about 12 percent.
The country received $22.07 billion in remittances in 2021, which was more than that in any other year in the history of Bangladesh.
This inflow was $21.78 billion in 2020 and $18.33 billion in 2019.
According to data in the ministry, the government has already set up many training centres in different districts along with skill development programmes to create skilled jobseekers.
The government encourages documented overseas employment, as an important component of earning foreign currency.
Bangladesh has become the 8th largest remittance-receiving country and the 6th largest migrant-sending country in the world, according to the World Migration Report 2022.
The government provided various training including diploma in ship building engineering, refrigeration and air-conditioning, general mechanics, electrical machine maintenance, auto CAD 2D and 3D, welding (6G), catering, masonry, Korean, Arabic, canton, Japanese language and others.
Earlier, the government declared the overseas employment sector as a “thrust sector” with maximum stress on further expanding job markets for the Bangladeshi job seekers abroad.
