Remittance up 15% in Jan

Bangladesh’s remittance income reached $1.96 billion in January, which is 14.92 per cent higher compared to the same month last year, according to the latest data from Bangladesh Bank (BB).

In August last year, the country had a $2.03 billion remittance income. After that, it came down to around $1.54 billion in September and further fell to $1.52 billion in October.

However, the amount went up to $1.59 billion in November and $1.69 billion in December last year.

According to BB data, remittance income increased by 4.25 per cent in the first seven months (July-January) of FY2022-23, when compared year-on-year. The country earned $12.45 billion in July-January, which was $11.94 billion in the same period in FY2021-22.

Talking to The Business Post, BB Executive Director and spokesperson Md Mezbaul Haque said that there were various types of remittance-related propaganda swirling but after they were proved wrong, the remitters’ confidence increased.

Remittance income has returned to a positive trend following the dollar rate increase, strict measures against hundi (the illegal channel of remittance inflow), and various awareness activities, he said.

Zahid Hussain, the former lead economist of World Bank’s Dhaka office, said that January’s data proves that if the remittance rate is increased, its flow in the formal channel goes up as well.

He said. “On the other hand, data from September last year also proves that remittances went to informal channels as a result of the rate cut.”

“Remittance has potential. It just needs a market-based rate. If the government can confirm that rate, remittance income through formal channels will increase a lot,” he added.

Due to the lockdowns in Bangladesh and other countries during the Covid-19 pandemic, remittance inflow through formal channels had increased significantly.

In FY2020-21, the country posted a record amount of remittance inflow, amounting to $24.78 billion and a growth of 36.13 per cent.

However, in FY22, remittance earnings dropped by 15.13 per cent to $21.03 billion.

In 2020, manpower exports had fallen from 7 lakh to 2.17 lakh because of the pandemic. In 2021, the number increased to 6.17 lakh after the Covid-related crisis and restrictions eased. Last year, a record number of 11.35 lakh workers left Bangladesh for abroad.

BB spokesperson Mezbaul said the central bank expects remittance inflow to increase after new expatriates start sending money back home.

“We have taken some initiatives. They will hopefully help remittance income increase further,” he added.