The flow of inward remittances reached $10.90 billion in the first five months of the current fiscal year (FY 2020-21), registering an increase of more than 41 per cent, despite the ongoing Covid-19 pandemic, officials said.
The inflow of remittances during the same period (July-November) of the previous fiscal was $7.72 billion.
The money sent home by Bangladeshis working abroad amounted to $2.08 billion in November 2020, down by $33.70 million from the previous month’s level, according to the central bank’s latest data.
In October last, the remittances stood at $2.11 billion. It was $1.55 billion in November 2019.
Talking to the FE, newly appointed Deputy Governor of the Bangladesh Bank (BB) Kazi Sayedur Rahman said, “We’re expecting to receive a total of $24 billion in remittances by the end of this fiscal year.”
He expressed the hope that the existing trend of inward remittances will continue in the coming months as the government has been providing 2.0 per cent incentive for remittance receipts.
“The government’s incentive and app-based services, offered by most of the banks, have encouraged non-resident Bangladeshis (NRBs) to send their hard-earned money through formal channels instead of informal ones,” Mr. Rahman explained.
Currently, 29 exchange houses are operating across the globe, setting up more than 1,345 drawing arrangements abroad, to expedite the remittance inflow, another BB official said.
The central bank of Bangladesh earlier adopted a series of measures to encourage expatriate Bangladeshis to send money through a formal banking channel instead of illegal “hundi” system to help boost the country’s foreign exchange reserve.
Bangladesh’s foreign exchange reserve rose to $41.21 billion on Tuesday from $41.17 billion the previous working day, according to the officials.
“Pro-active attitude along with technology-based service of the banks has helped achieve the higher growth of inward remittances during the period under review,” Ali Hossain Prodhania, managing director of Bangladesh Krishi Bank (BKB), told the FE while explaining the latest trend of inward remittances.
He also said some of the banks have offered extra incentives, aiming to attract remitters and beneficiaries.