There is no beating around the bush when it comes to Bangladesh’s recent struggles, be it the soaring inflation which hit a seven month high last month or our dwindling foreign reserves. Concerns about the country's ability to meet its import obligations and maintain economic stability are justified, with no quick fixes in sight.
With that said, remittances, long considered one of the foundations upon which our economy was built, continues to be a lifeline. Last month saw over $2 billion in remittance, marking the second consecutive month Bangladesh saw over $2bn in remittance. The central bank's decision to allow market forces to determine the exchange rate has also played a pivotal role in this turnaround, incentivizing expatriates.
To say that this influx of funds has provided a much-needed respite would be an understatement, but it goes without saying that Bangladesh must do what it can from its end to ensure that the source of this remittance, ie, our expat workers, are given the proper support that they not only deserve, but have certainly earned. This means ensuring that host nations are not mistreating our expat workers, while also supporting them with any paperwork or other protocols. Engaging with the expat community and addressing their concerns would also go a long way to further strengthen their trust in the legal remittance channels.
Bangladesh’s imminent graduation will bring with it many challenges, and our issues with inflation and a stable foreign reserve are not going away any time soon. In light of such events, it is vital for us to recognize the increased importance of remittance, and for the relevant authorities to eliminate all barriers and roadblocks for our expats to ensure that remittance continues to display a positive trend.
