The downward trend of remittances has continued in the current fiscal year, as expatriates sent $1.55 billion in November.
In the same month last year, it was $2.06 billion, meaning remittances fell by $52.50 million (25.26%) in November alone.
Remittances sent by expatriates have been on the decline for five consecutive months and the amount sent in November alone was the lowest since May 2020.
During that month, the country received a minimum remittance of $1.5 billion.
From July to November of the current fiscal year (2021-22), the total remittance inflow was $8.40 billion, down by 20.98% compared to the same period last fiscal year.
To compare, in FY 2020-21, the July inflow of $2.6 billion was an increase of 62.5% compared to the remittance sent the year before (FY19).
According to data, this fiscal year expatriates sent $1.87 billion in July, $1.81 billion in August, $1.72 billion in September and $1.64 billion in October.
Economists think that the downward trend in remittances has continued due to the decreased tendency to go abroad and the increasing number of hundi (Informal channels of sending money).
Prof Mustafizur Rahman, distinguished fellow at Centre for Policy Dialogue (CPD), told Dhaka Tribune that the drop of remittance flow already affected different sectors.
He said: “It would have an impact in three main sectors, which have already started. Firstly, in the dollar market as it goes up rapidly. Secondly, it has a great impact on imported inflation. Thirdly, decreased remittances mean less export of our workforce.”
Besides, I think the legal remittance has also come down. Hundi reliance has increased as before," he added.
The highest reserve in history was $48 billion, recorded on August 24 last year, but it is now maintaining a downward trend.
According to BB data, on November 24 the foreign reserve was $44.94 billion which means there was a shortfall of 9% in the last 15 months.
Remittances through state-owned banks reached $309.4 million in November.
One of the two specialized banks received $30 million in remittances. Besides, remittances of $1206.5 million came through private banks and $7.4 million through foreign banks.
Besides, the price of the dollar has been rising for the last three months and is being sold at Tk85.80 in the inter-bank market.
47 NRB to receive CIP award for remittance
The government is going to honour 47 Non-resident Bangladeshis (NRB) as commercially important person (CIP) status for sending the maximum amount of remittances through formal channels.
Nine out of the remaining ten are going to get the award this year in the category of importing Bangladeshi products and services to foreign countries and one in the category for making direct investment in the industrial sector.
The list of 57 people was recently published by the Ministry of Expatriate Welfare and Overseas Employment.
The government is scheduled to hand over the certificates among the non-resident Bangladeshi CIPs through a programme in Dhaka on the occasion of International Migrants Day on December 18.
Of the selected CIPs, 37 live in the Middle East, three in the USA, two each in the UK, Japan, Italy, Russia, Malaysia and Thailand and one each in Canada, Australia, Singapore, Maldives and Cambodia.
The highest number of NRB-CIPs, 26, came from the UAE and two of them are women.
Oman is second on the list with nine of the selected ones.
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