The Financial Express

Inward remittances soar 39pc in first 11 months

| Updated: June 02, 2021 21:30:55

Inward remittances soar 39pc in first 11 months

The inflow of remittances reached nearly US$ 23 billion in the first 11 months of the current fiscal year (FY), registering an increase of more than 39 per cent despite the Covid-19 pandemic, officials said.

The inward remittances jumped to $22.84 billion during the July-May period of FY2020-21 from $16.37 billion in the same period of the previous FY, according to the central bank's latest statistics.

The money sent home by Bangladeshis working abroad amounted to $2.17 billion in May 2021, up by $103.47 million from the previous month's level of $2.07 billion. It was $1.50 billion in May 2020.

Talking to the FE, Kazi Sayedur Rahman, deputy governor of the Bangladesh Bank (BB), said: "We're expecting to receive around $25 billion in remittances by the end of this fiscal year."

The BB officials, however, expressed the hope that the upward trend of remittance would continue in the coming months as the government is providing a 2.0 per cent incentive on remittance receipts.

"We're expecting that the inward remittances would increase further this month ahead of the Eid-ul-Azha," another central banker said, explaining the existing trend of remittance inflow.

The inflow of remittances normally increases before the two Eid festivals each year, he added.

Currently, 29 exchange houses are operating across the globe, setting up around 1,400 drawing arrangements abroad, to facilitate sending remittance through formal channel by the non-resident Bangladeshis (NRBs), according to the central banker.

The government's incentive was also contributing to encourage the NBRs to send their hard-earned money by using the banking channel instead of illegal "hundi" system, senior bankers said.

M Shahidul Islam, managing director (MD) and chief executive officer (CEO) of Shahjalal Islami Bank Limited (SJIBL), said that the stable exchange rate of Bangladesh Taka (BDT) against the US currency has helped boost the inflow of remittances in the recent months.

"Besides, the technology-based services by some banks contributed to achieve the higher growth of inward remittances, which may continue in the coming months," explained the senior banker.

The central bank had earlier took a series of measures to encourage the expatriate Bangladeshis to send their hard-earned money home through the formal banking channel, instead of the illegal "hundi" system.

Bangladesh's foreign exchange reserve rose to $45.05 billion on Tuesday from $44.96 billion on the previous working day, the BB officials added.

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