Dhaka, Bangladesh
BB to encourage inflow of remittances

BB to encourage inflow of remittances

Bangladesh Bank (BB) will give remittance award to the highest remittance senders and the highest remittance receiving institutions for encouraging Non Residence Bangladeshis (NRBs) to send money through legal channels, reports BSS. “We will give the ‘Bangladesh Bank Remittance Award-2016’ under five categories to expedite the inflow of remittance,” BB’s Financial Inclusion Department General Manager M Abul Bashar told the news agency on Tuesday. The categories are skilled remitter, unskilled remitter, bond investor NRB, exchange house owner NRB and the highest remittance receiver bank. Abul Bashar said the award will be handed over at a function to be held on September 19 at Bangla Academy in the city. Finance Minister AMA Muhith is expected to attend the function as the chief guest while Financial Institutions Division Secretary M Eunusur Rahman and BB Governor Fazle Kabir will attend it as special guests. BB Deputy Governor Shitangshu Kumar Sur Chowdhury will chair the function. A total of 35 awardees, including remitters, exchange houses, bond investors and banks, will receive the award. Out of 35 awardees, five banks will get the award this year. There was a falling trend in the inflow of remittances since fiscal year 2014-15 but the situation witnessed a change at the beginning of fiscal year 2017-18 as the expatriates sent home US$1,418.58 million in August, up by $234.97 million from the corresponding month in the previous fiscal 2016-17 (FY17), according to the BB data. Migrant workers sent $ 1,115.57 million in July, which was $110.06 million up from the corresponding month in the previous fiscal. “The overall situation has improved as BB has taken some measures to streamline the legal channel for encouraging Non-Resident Bangladeshis (NRBs) to send home money,” said Bangladesh Bank (BB’s) Deputy Governor Abu Hena Mohammad Razee Hassan earlier. As part of its move to plug the informal channels, he said, the central bank has already put some mobile banking operators under close supervision as it has identified some mobile accounts used for sending home remittances illegally, he added. According to BB, the country received a total of $15,316.91 million in FY15, $14,931.15 million in FY16 and $12,769 million in FY17. “The recent flow of remittance indicates that it is gradually increasing and this trend is likely to continue throughout FY 18. BB is trying to create awareness among the expatriates to send remittances through proper channels,” said Hassan. Earlier bdnews24.com adds; Bangladesh has started fiscal 2017-18 on an upbeat note by posting growths in both exports and remittance inflow in the first two months. Exports fetched the country $6.84 billion in July and August, which is around 14 percent more than the same period last financial year and nearly 8 percent more than the target set in the budget. To top it off, the amount of money sent by expatriate Bangladeshis grew by 16 percent year-on-year to $2.53 billion after a nosedive to a six-year low of $12.77 billion in the last fiscal year. Economists and exporters are seeing the growths as a good sign for Bangladesh’s economy. Bangladesh Institute of Development Studies researcher Zaid Bakht told the news agency, “Export did not grow so well last year. Remittance dropped around 15 percent...Now, the good position of the two indices will impact our economy positively.” According to data released by the Export Promotion Bureau earlier in the day, the country exported goods worth $3.2 billion in July and $3.64 billion in August. As usual, the exports grew on readymade garments that contributed $5.52 billion or over 83 percent of the total figure. Bangladesh Garments Manufacturers and Exporters Association Vice President Mahmud Hasan Khan Babu was happy with the growth in exports. He, however, was worried over the drop in the prices of garments. “It will need at least three to four months to understand the condition,” he said. The government targets to export $37.5 billion in the current financial year. Last year, the country exported goods worth over $34.65 billion with a growth of 3.39 percent against a target of $37 billion.

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