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Remittance up in October

  • Published at 11:04 am November 5th, 2013

Remittance from wage earners in abroad rose more than 20% in October from the previous month thanks to Eid-ul-Azha.

Bangladesh Bank data showed the country received $1.23bn from the expatriates during the month while it was $1.02bn in September.

In July, the remittance inflow totalled $1.24bn as the Muslims’ festival Eid-ul-Fitr was celebrated.

The following month August witnessed a fall with the amount down to $1bn.

Bangladesh’s foreign currency reserves recently exceeded $16bn.

Of the remittance received during the month of October, state-owned commercial banks channelled $382m, specialised banks $12.55m, private commercial banks $825m and foreign commercial banks $15m.

According to the central bank data, the remittance inflows during the past four months have been slow as compared with same period last fiscal.

In four months of the present fiscal year, the accumulated remittance fell to $4.50bn from $5bn one year ago. 

The central bank sources linked the fall with the worsening political turmoil and falling dollar prices against taka.

“Issues like political turmoil and weak dollar are discouraging expatriates to send money home now,” viewed a high official of Bangladesh Bank.

A World Bank report described Bangladesh as the 7th most remittance earning country in 2012.

Remittance has been growing at double digits since 1980s and currently accounts for nearly 11% of GDP.

As policy steps to smooth remittance inflow, separate savings instruments have been created for non-resident Bangladeshis.

The instruments were such as a non-resident foreign currency deposit, USD premium bond and wage-earners’ development bond, said Bangladesh Bank sources.

Smart cards or mobile phone banking services have been introduced to facilitate remittance channelling.

As many as 37 banks also set up 1,084 drawing arrangements with 288 exchange houses all over the world to bring down remittance cost.

According to Bangladesh Bank data, in the FY2008-09, the remittance was received $9.7bn from 650,059 migrant workers.

In the FY2012-13, the figure rose to $14.5bn despite the fact that the number of migrant workers dropped to 441,301.