As coronavirus pandemic drags on shattering the global economic landscape, many economists and experts have been proven wrong with continuous remittance inflow in the country.
Bangladeshi expatriates sent remittance worth $2.15 billion in September this year, which was 45 percent higher than it was in the same period last year. Inward remittance in September, 2019 was $1.47 billion, according to the latest information on remittance of Bangladesh Bank (BB).
Bangladesh Bank data show during the first three months (July-September) of the current fiscal year 2020-21, expatriates sent nearly $6.5 billion remittance making it 47.57 percent larger than the same period last fiscal year. In first three months of 2019-20 fiscal year, expatriates sent around $4.51 billion.
Economists are surprised about the upward trend of remittance inflow in the country at a time when the global economy is facing a major challenges because of coronavirus pandemic which many feared may cause a global recession.
Commenting on the higher remittance inflow, Executive Director of Policy Research Institute Ahasan H Mansur said 2 percent cash incentive and the decline of hundi (informal money transfer) transaction as most airways remain closed encouraged expatriates to send money through banking channel which helped the upward trend of remittance in the country.
“It is very good for the country and helps to overcome the pandemic shock that has slowed down our economy a bit,” he added.
As the remittance inflow is growing so is the liquidity of the banks, which ultimately will help the country’s economy to turn around.
Many feared remittance would dry up after Eid-ul-Azha as expatriates send increasing amount of money to celebrate Eid for their near and dear ones. But showing thumbs down to this prediction remittance inflow has keeps going up.
Central bank statement showed that in July, expatriates sent $259.95 crore which is the highest amount in a single month in Bangladesh history.
Astoundingly, remittance inflow of coronavirus-ridden month of July outshone the whole of last fiscal year’s remittance. The whole of 2019-20 fiscal year had a total of $250.11 crore remittance inflow.
In August, remittance inflow was slightly down at $196.39 crore but jumped again in September at $215.18 crore.
Amid the growing trend of remittance inflow, Bangladesh Bank reserve has crossed $39 billion.
In a conservative estimate, it is believed that nearly 1 crore Bangladeshi expatriates works outside the country and their contribution to the nation GDP is about 12 percent.
To encourage expatriates to send money through banking channel government declared 2 percent cash incentive, which means if an expat sends Taka 100, he or she will receive Taka 102.
Government had earmarked Taka 3,060 crore in the current fiscal year to reward cash incentive for remittance inflow.
On top of that, to lure expatriates, many banks are offering additional 1 percent incentive couple with the 2 percent of the government declared one if expatriates choose their bank over other ones.
In 2019-20 fiscal year, expatriates sent $18.20 billion to the country which was 10.87% higher than the 2018-19 fiscal year.
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