Remittance inflow drops 3.27% in August

Wage earners remittance inflow declined by 3.27 per cent to $1.81 billion in August.

The fall in remittance inflows continued for the fourth consecutive month.

According to Bangladesh Bank data released on Wednesday, Bangladesh’s remittance inflow stood at $1.81billion, down by 3.29 per cent, which was $1.87 billion in July of 2021.

The downtrend in inward remittance started in January when it came down to $1.96 billion from $2.05 billion in December 2020. The downswing continued till March. In April, the remittance inflows regained and stood at $2.06 billion and it was $2.17 billion in May.

This was because of Eid-ul-Fitr and Eid-ul-Azha, when expatriates usually send more for their families to celebrate the two religious festivals.

However, the downtrend reappeared in June and it continued in July and August.

Talking about the negative growth, experts said that migrant workers once again opted for informal channels to send money home and it caused the downswing.

“Remittance inflow increased sharply last year as the migrants sent money through formal channels. On the other hand, expatriates also sent their accumulated money fearing possible return due to the Covid-19 pandemic,” Zahid Hussain, former lead economist of the World Bank, Bangladesh told the Business Post.

With the ease in travel after improvement in the global pandemic situation, informal channels to remit opened and expatriates are sending money through those paths, said Zahid.

As a result, the inflow of remittance is showing a declining trend, he added.

In the fiscal year 2021-21, remittance inflow hit a record high of $24.77 billion, which was $18.20 billion in the previous fiscal year.

For the second fiscal year, the government is providing a 2 per cent cash incentive against the remittance sent by expatriates.