Bangladesh received $1.75 billion in May last fiscal year, the highest ever in a single month
Remittance inflow increased by 5.08% to $1.48 billion in August this fiscal year compared to the same month of last fiscal year, according to the Bangladesh Bank latest data.
The remittance inflow was at $1.41 billion in August last fiscal year.
The remittance inflow witnessed the spike as Bangladeshi expatriates sent home a higher amount of money on the occasion of Eid-ul-Azha and to avail incentive on remittance, said a BB high official.
In the first month (July) of the current fiscal year, Bangladeshi expatriates sent $1.59 billion remittance ahead of Eid-ul-Azha.
Bangladesh received $1.75 billion in May last fiscal year, the highest ever in a single month.
The inflow has increased also due to various steps taken by the central bank to stop hundi and high exchange rate of dollar in the local market.
Central bankers have said that as the exchange rate has increased significantly in recent times, the expats felt encouraged to remit enhanced amounts to their dear and near ones.
Besides, the move to give fiscal incentive for remittance, announced in the current budget, also acted as a booster, as the government is thinking to provide as high as 2% incentive on remittance.
On August 6, Bangladesh Bank (BB) issued a circular on providing 2% cash incentive for money to be remitted through the banking channel into the country.
The cash incentive would be effective from July 1 this year, said the circular, issued from the foreign exchange policy department (FEPD) of the central bank.
"Foreign remittance worth of $1,500 or equivalent currency will not require any documents to receive incentive. Cash incentive for any amount above $1,500 will be subject to providing some documents," reads the FEPD circular.
The documents include passport copy of expats, appointment letter, certificate given from Bureau of Manpower, Employment and Training (BMET) and copy of trade licence in case of remittance generated from business proceeds.
It said banks would face punitive actions for harassment or delay in disbursing cash incentive.