The country’s forex reserve touched a new height of $44.85 billion on Thursday, riding on robust remittance inflow despite the global pandemic.
According to Bangladesh Bank (BB), expatriates have sent $1.86 billion in remittance in April, which helped the forex reserve to reach the new height.Bangladeshi expatriates sent $1.27 billion remittances ahead of Eid-ul-fitre last year (May 2020) to take the forex reserve to $33 billion.
Economic analysts said inward remittance may increase further ahead of Eid-ul-Fitr as the expatriates usually send more money to their relative in Ramadan and ahead of Eid.
Bangladesh’s remittance inflow grew 35.1 per cent in the nine months (July- March) of the current fiscal year compared to the same period last fiscal, according to a recent report of Bangladesh Bank.
Bangladesh Bank officials said remittance growth continued in March as the expatriates are sending remittance through proper banking channels after the government has introduced a 2 per cent incentive on remittance transfers.
According to BB data, in the first nine months of the current financial year, expatriates have sent around $18.6 billion, which was $13.77 billion in the same period of FY20.
Expatriates have sent $1.91 billion in March of FY21 which amount was $1.27 billion in FY20. More than 10 million 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.The government has announced an incentive at the rate of 2.0 per cent to encourage expatriate to send their income through legal channels.
In the current fiscal, the government has allocated Tk 30.6 billion as cash incentive against remittance. In addition to this, some banks are offering 1 per cent extra incentive against remittance.