Muhith against offering special financial benefits | 2018-09-21 |

Encouraging Remittance Inflow

Muhith against offering special financial benefits

Staff Correspondent     21 September, 2018 12:00 AM printer

Finance Minister AMA Muhith said he does not think that there is any need for offering special exchange rate or some special financial benefits to remitters to encourage more foreign remittance inflow into the country as it might make the economy unstable.

Instead he is in favour of honouring good remitters and of introducing a system which will make remittance sending from abroad free of cost.

“There was a system in Pakistan era under which special exchange rate had been offered for the remittance senders but it was harmful for the economy as well as monetary policy. Now, some people are advocating for such system but I’m dead against such facility,” Muhith said.

The finance minister’s comments came when he was addressing a function of Bangladesh Bank Remittance Award 2017 at Bangladesh Bank Training Academy on Thursday.   

Now, the government is thinking about how to make remittance sending totally free of cost to encourage sending remittance to the country.

“We’re considering a proposal that seeks to end payment of fee for sending remittance and repaying the cost of sending money,” the minister said.

A total of 37 persons and financial institutions have been given Bangladesh Bank Remittance Award 2017 to encourage sending money through banking system.

The Finance Minister handed over the awards to 29 remitters, five commercial banks and three money exchanges owned by NRBs.

Muhith said the remittance senders are eligible for getting the central bank honor, as their contribution to national economy is immense, which ultimately help enhance production in the country.

Bangladesh Bank Governor Dr Fazle Kabir said remittance inflow fell in FY16 and FY17.

“But the situation has now changed, as nearly $15 billion remittance came last fiscal year and so far this year remittance growth is 17 percent,” he said.

He said the central bank is taking a number of initiatives to further increase remittance inflow to sustain the current 7.5 percent plus growth and cross the 8 percent threshold.