Robust remittance inflow expected

As global economies are gradually opening up despite the aggression of the rogue  Covid-19 pandemic, remittance inflows  are  likely  to  bounce  back  in  the second half of the current fiscal 2020-21.

Remittance inflow  may rise further as an  effective vaccine to  prevent the deadly virus  has already been  available in different countries, said Bangladesh Bank in a report. 

Moreover, the resumption of different development projects and overall economic activities in the country might be conducive to the foreign direct investment (FDI) inflows, said the central bank in its first quarter economic review.     

"Various  government  policy  measures  such  as relaxation  of  conditions  for incentives  including  an  extension  of  document  submission  time from  15  days  to two  months  and  a pandemic induced slump in transactions through  informal  channels  supported the strong  remittance growth," said the BB.

It said following   the resilience   of robust growth in remittance inflows, foreign currency reserves are expected to continue its uptrend.

The remarkable growth in remittance inflows mostly came from the Gulf region which accounted for 57 percent share of total inflows.

Remittances from Europe and Asia Pacific region also increased significantly during the first six months of the current  Fy.

According to the latest data, Bangladeshis received a total of $12,944.74 million in remittances in the six months of FY21, which is around 37.60 percent higher than the amount of corresponding period of the preceding year.

The country received $9407.93 million remittances during the July-December period in fiscal year 2019-20.

“The inflow of remittances maintains upward trend in FY21as the government has been offering two percent cash incentive to streamline the legal channel to encourage non-resident Bangladeshis (NRBs) to send home money,” central bank’s chief spokesperson M Serajul Islam said.

The recent flow of remittance indicates that it is gradually increasing and this trend is likely to continue in the upcoming months, he added.

According to their data, the country received $2,598.21 million in July, $1,963.94 million in  August , $2,151.05 million in September , $2,102.16 million in October, $2,078.74 million  in November and $2050.64 million in December of the fiscal 2020-21.

But in 2019-20, the country got $1,597.69 million in July, $1,444.75 million in August, $1,472.16 million in September, $1,639.62 million in October and $1,555.23 million in November and $1691.68 million in December of the fiscal 2019-20.