Bangladesh’s economy shines depending on remittance, while other economic indicators slow down, experts said.
The expatriate Bangladeshis sent US$7,714.19 million remittances in the first five months of the current fiscal, which was 22.67 percent higher than the corresponding period of 2018-19 years.The central Bangladesh Bank (BB) data showed that the country received $6,288.44 million remittances during July-November period in 2018-19 fiscal years.
The experts said, “The flow of remittances into the country shows upward trend in the current fiscal 2019-20 as the government has taken measures, including two percent cash incentive, to streamline the legal channel for encouraging non- resident Bangladeshis (NRBs) to send money to the country.”
Devaluation of the local currency against the US dollar has also pushed up the flow of inward remittances in the recent months, they said.
The central bank’s spokeperson Md. Serajul Islam told the daily sun that the flow of remittance will increase further in the coming months as people are getting the benefits of 2.0 per cent incentive for remittance receipts directly.
Islam, also an executive director of the central bank, said the expatriates were encouraged to send their money through the formal banking channel, instead of the illegal “hundi” system, due to the incentive.
He said the recent flow of remittance indicated it was gradually increasing and this trend was likely to continue in the coming months.According to BB data, the country received $1,597.69 million in July, $1,444.75 million in August, $1,476.91 million in September, $1,639.62 million in October and $1,555.22 million in November of the fiscal 2019-20.
But in 2018-19, the country got $1,318.18 million in July, $1,411.05 million in August, $1,139.66 million in September, $1,239.11 million in October and $1,180.44 million in November.
In November this fiscal, six state-owned commercial banks-Agrani, Janata, Rupali, Sonali, Basic and BDBL-received $318.61 million while one state-owned specialized bank- Bangladesh Krishi Bank- received $30.55 million.
Of the state-owned banks, Agrani Bank received $136.62 million, Janata Bank $65.79 million, Rupali Bank $20.03 million, Sonali Bank $96.10 million and Basic Bank received $0.07 million.
Besides, the expatriates have sent $1,194.66 million through private commercial banks. On the other hand, the expatriates have sent $11.40 million through foreign commercial banks.
Though the number of overseas employments registered a falling trend in recent months following a drop in demand for workers in the Middle Eastern countries, the remittance inflow increased due to hike in their wages.
Some 469,275 workers were employed in the nine months to September 2019 against 555,393 outflow workers at the same period of the last calendar year, according to official figures.
Some important destinations including the United Arab Emirates (UAE), Malaysia, Kuwait and Bahrain remained closed for Bangladeshi workers for a long time.
According to BB, some 1.15 crore expatriate Bangladeshis are staying and working in different countries across the world.