Remittance hits record low of $1.87b in July

Remittance inflows reached a record low of $1.87 billion in the first month of the new fiscal year 2021-22, which is 27.79 per cent lower than the same month of the previous financial year.

Migrants had sent $ 2.59 billion remittance in July of the last financial year (FY-2020-21)

“As many countries enforced lockdowns during the third wave of Covid-19 pandemic, the income of the migrant workers witnessed a decline,’’ said former governor of Bangladesh Bank Saleh Uddin Ahmend while talking to The Business Post.

In this regard, he further explained that apart from their regular income decline, the migrant workers’ savings were also shortened abruptly at the time of their no job during the lockdown and that’s why the amount of remittance also witnessed a slower trend.

He, however, opined that the overall situation could be further ascertained only after observing the future remittance inflow in the coming month.

According to the central bank, remittances through state-owned banks reached $431.6 million in July. Remittances worth $32.25 million have come through two specialised banks.

Besides, remittances of $1.40 billion came through private banks and $6.18 million through foreign banks.

As always, most of the remittances have been drawn through private Islamic banks. These banks have revived remittances of $ 550.30 million.

Besides, remittance of $229.11 million has come through Dutch-Bangla Bank. Remittances of $194.8 million were collected through Agrani Bank, $117.49 million through Sonali Bank and $59.29 million through Janata Bank.

From FY’19, the government is giving incentives at the rate of two percent on remittances sent by expatriates. In other words, if an expatriate sends 100 dollars to the country, the beneficiary gets a total of 102 dollars by adding 2 more dollars.

In addition, various banks and mobile banking service providers are offering an additional one per cent for Eid and festivals with the incentive of soccer. Expatriates are now more enthusiastic to send their remittances through legal channels instead of informal paths.

During the last financial year, Bangladesh saw a record of $24.77 billion remittance earning, which was 36 per cent higher than the previous financial year.

Meanwhile, Bangladesh Bank has proposed to increase the incentive in expatriate income by one percent, to increase the flow of remittances. To make it three percent, Bangladesh Bank has recently sent a letter to the Financial Institutions Department of the Ministry of Finance.