Remittance soars 35pc to $18.6bn in 9 months

Staff Correspondent

2 April, 2021 12:00 AM printer

Bangladesh’s remittance inflow grew by 35.1 per cent in the first nine months (July- March) of the current fiscal year compared to the same period of last fiscal.

According to Bangladesh Bank (BB) data, in the first nine months of the current financial year, expatriates have sent around $18.6 billion, which was $13.77 billion during the same period of FY20. 

BB officials said remittance growth continued in March as the expatriates are sending remittance through proper banking channels after the government has introduced a two per cent incentive on remittance transfers.

Expatriates have sent $1.91 billion in March of FY21 which was $1.27 billion in the same period of FY20.

Remittance inflow stood at $1.96 billion in January, $1.78 billion in February, $20.05 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.

Ahsan H. Mansur, Executive Director of the Policy Research Institute of Bangladesh (PRI), said more remittances are coming from Europe and the US than ever before.

Expatriates from those regions are sending remittance to Bangladesh in the hope of     

profit as many are buying flats in different cities of the country including Dhaka.

He said the government's initiative of providing a two per cent cash incentive is seen as the key reason behind the increase in remittance inflow through formal channel.

Bangladesh Bank executive director and spokesperson Serajul Islam said, “In the midst of the Covid-19 pandemic, expatriates are sending more money to the country than before, it is a great blessing for our economy.”

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

In the current fiscal, the government has allocated Tk 30.6 billion as a cash incentive against remittance. In addition to this, some banks are offering a 1.0 per cent extra incentive against remittance.