Friday, 24 September, 2021
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Remittance hits new record of $24.77bn in FY21

Exports reach $38.75bn

Remittance hits new record of $24.77bn in FY21

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Bangladesh’s inward remittance reached a record $24.77 billion in 2020-21 fiscal, posting a 36.10 per cent growth despite the coronavirus pandemic.

In the just-concluded fiscal year, Bangladeshi expatriates have sent home $24.77 billion, which is so far the highest remittance in a single year. Inward remittance stood at $18.205 billion in FY20.

Meanwhile, the country’s forex reserves have hit a new high of $46.429 billion on Monday thanks to robust growth in inward remittance.

On the other hand, the country’s exports stood at $38.758 billion in FY21 against the target of $41 billion.

Though export earnings have missed the target, it is a 15.10 per cent growth over $33.674 billion of FY20 despite the pandemic, said sources at Bangladesh Bank (BB) and finance ministry.

Exports jumped to $3.577 billion in June this year (FY21) from $3.577 billion in the same month of FY 20 and $2.714 billion in FY19.

Remittance stood at $1.940 billion in June this year from $1.832 billion in the same period of last year.

The economists see the robust performance in remittance and exports as a sign of Bangladesh’s economic strength, which is improving the country’s image of the country in the global arena.

Former BB governor Dr. Saleh Uddin Ahmed said a healthy forex reserve shows the economic strength of a country and Bangladesh achieved such level of strengths thanks to its steady inward remittance.

He also suggested fixing a smart policy for utilizing the forex reserves and lending money in priority-based public sector projects.

Economist Dr Zaid Bakht said forex reserve is steadily rising due to a jump in remittance and exports, as well as a slowdown in imports and an increase in foreign aid.

Dr Zaid Bakht, also the chairman of Agrani Bank, said, “Steady growth of foreign currency reserve improved Bangladesh’s image in the global arena, now we emerged as money lender country.”

He said with the current reserves, it is possible to cover the import cost of more than 11 months at the rate of four billion dollars per month.

The expatriates sent remittances worth $2.17 billion in May, $2.06 billion in April, $1.910 billion in March, $1.78 billion in February, $1.96 billion in January, $2.05 billion in December, $2.8 billion in November, $ 2.1 billion in October, $2.15 billion in September, $1.96 billion in August and $2.59 billion in July of FY21.

In the FY20, the expatriates sent remittances of $1.83 bn in June, $1.50 bn in May, $1.09 bn in April, $1.27 in March, $1.45 bn in February, $1.63 bn in January, $1.69 bn in December, $1.55 bn in November, $1.64 bn in October, $1.47 bn in September, $1.44 bn in August and $1.59 bn in July.

Monthly remittance inflows in FY 21 were higher than all correspondent months in FY20.

More than 10 million Bangladesh expatriates are working in different countries and sending hard-earned remittances to their families in the country. The contribution of remittance to the country’s GDP is about 12 per cent.

More than 10 million Bangladesh expatriates are working in different countries and sending hard-earned remittances to their families in the country. The contribution of remittance to the country’s GDP is about 12 per cent.