Dhaka, Bangladesh
Remittance inflow increases by 20.48pc

Remittance inflow increases by 20.48pc

News Report Expatriate Bangladeshis sent home 6,154.22 million US Dollar in remittances in the first four months of the current fiscal 2019-20, which is 20.48 per centhigher than that of the previous year. According to Bangladesh Bank data, the country received 5,108 million dollar remittances during July-October period in 2018-19 fiscal year. “The flow of remittances into the country shows up-trend in the current fiscal 2019-20 as the government has taken measures, including two per centcash incentive, to streamline the legal channel for encouraging non-resident Bangladeshis (NRBs) to send money to the country,” central bank’s spokesperson M Serajul Islam said. He said the recent flow of remittance indicates that it is gradually increasing and this trend is likely to continue in the upcoming months. According to their data, the country received 1,597.69 million dollar in July, 1,444.75 million in August, 1,472.16 million in September and 1,639.62 million in October of the fiscal 2019-20. But in 2018-19, the country received 1,318.18 million dollar in July, 1,411.05 million in August, 1,139.66 million in September and 1,239.11 million in October. In July this fiscal, six state-owned commercial banks-Agrani, Janata, Rupali, Sonali, Basic and BDBL-received 353.15 million dollar while one state-owned specialized bank- Bangladesh Krishi Bank- received 30.24 million. Of the state-owned banks, Agrani Bank received 147.12 million dollar, Janata Bank 75.94 million, Rupali Bank 20.76 million, Sonali Bank 109.23 million and Basic Bank received 0.10 million. Besides, the expatriates have sent 1,240.41 million through private commercial banks. On the other hand, the expatriates have sent 15.82 million through the foreign commercial banks. Recently, the government started handing out through banks 2 per centcash incentives on remittances sent this fiscal year, according to Finance Minister AHM Mustafa Kamal. “Don’t miss the incentives on the remittances sent in the July-September period. Make sure you’ve received the dues,” the finance minister advised the Bangladeshis working abroad and their families at a programme last month. In addition to the incentives to boost remittance inflows through legal channels, the government has announced that the expatriates will not require to show source of the money sent if the amount is below 1,500 dollar in a single transaction. An expatriate can make as many transactions as they want in a day, Kamal clarified. The government has allocated Tk 30.6 billion in incentives on remittances this fiscal year. The move drove July-September remittance inflows up to $4.5 billion with a rise of 16.58 per centthan the first quarter of last fiscal year. Usually Bangladesh’s remittance inflows drop after a spurt during Eid-ul-Fitr and Eid-ul-Azha but the trend has been bucked this year. The expatriates sent 1.46 billion dollar in September, with a 29 per centrise from the same month last year, and the fourth highest remittance in a month in the country’s history. The expatriates sent nearly 1.75 billion in May ahead of Eid-ul-Fitr, which was the highest for a month. Economists and bankers believe the government’s announcement to award 2 per centincentives on remittances, increase in manpower export and rise in fuel oil prices in the global market have caused the surge in Bangladesh’s remittance inflow. The 2019-20 financial year started with the remittance inflow in an upbeat mood as the country received 1.6 billion in July, the second highest for a month and 21.2 per centmore than the same month last year. In 2018-19, Bangladesh received record 16.42 billion in remittance with a 9.6 per centgrowth. With the new remittance, Bangladesh Bank’s foreign currency reserves stood at 31.85 billion. It dropped below 32 billion recently after payments were made against import to the Asian Clearing Union. In the first nine days of August this year, expatriate Bangladeshis have sent home an increased amount of money before the Eid-ul-Azha, taking the figure to 716.2 million dollar. Bankers also believe the government announcement on 2 per centincentives for remittance inflow has encouraged the Bangladeshis living abroad. The 2019-20 financial year started with the remittance inflow in an upbeat mood as the country received 1.6 billion in July, the second highest for a month and 21.2 per centmore than the same month last year. The expatriates set the highest monthly record of remittance in May by sending over 1.75 billion ahead of the Eid-ul-Fitr. In 2018-19, Bangladesh received record 16.42 billion in remittance with a 9.6 per centgrowth. With the newly received remittance, the foreign currency reserves of Bangladesh reached 32.4 billion on Wednesday. The reserves dropped below 32 billion recently after payments for import to the Asian Clearing Union. Former central bank governor Mohammed Farashuddin hailed the government decision on incentives for remittance. Money sent by the non-resident Bangladeshis makes up about 12 per centof Bangladesh’s GDP. The depreciation of taka against US dollar and different government measures, including strong surveillance on illegal inflow of money, played a major role in encouraging migrants to send home more remittance in recent times than they did in the past, analysts say.

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