The remittance flow is decreasing despite various steps taken by the government and various facilities provided by Bangladesh Bank. Expatriate income has fallen sharply in the recently concluded August. Last month, 1.59 billion 94 million US dollars came to the country through legal channels or banking channels. This is the lowest in the last 6 months.
Earlier in February this year, remittances came in at 156 million dollars. This information was found in the weekly update report of Bangladesh Bank on Sunday (September 3).
Economic experts say that if the price of the dollar is high in the open market, remittances sent through Hundi will increase. As a result, expatriate income decreases.
In the month under discussion, the dollar rate was 5 to 6 rupees higher in the open market than in the bank. Therefore, expatriate Bangladeshis have reduced sending remittances through official channels in the hope of more profit.
According to the data of the Central Bank, remittances in the country through banking channels reached 1.59 billion 94 million dollars in August. Compared to the same month of 2022, which is 43 million 74 million dollars less. The rate is 21.47 percent. In August last year, remittances came in at $203.69 million.
Expatriate income has decreased in August compared to July this year. In the previous month, remittances came in at $197.31 million. In other words, compared to July, last month 373.7 million dollars came less. The rate is 18.93 percent.
Rising Remittance Inflows: A Look at Bangladesh’s Economic Landscape
According to the data of Bangladesh Bank, in August 183.1 million dollars came through state-owned banks and 33.39 million dollars through specialized banks. Besides, remittances of 1376 million dollars through private banks and 63 million 10 thousand dollars through foreign banks have reached.
In the last fiscal year 2022-23, the total expatriate income in the country was 2 thousand 161 crore 6 lakh dollars. In the previous financial year which was 2 thousand 103 million 17 million dollars. The highest remittances were collected in the country’s history in the fiscal year 2020-21. The amount of which was 2 thousand 477 million 77 million dollars.
Bangladesh Bank has taken various initiatives to increase remittance. They are encouraging expatriates to send money through legal means. The Central Bank has relaxed the conditions for filling Form C to bring remittance in exchange for services. Besides, entrepreneurs and exporters have been given the opportunity to bring 20 thousand dollars or an equivalent amount of foreign currency without prior announcement.
Besides, 2.5 percent cash incentive against wage earners’ remittances, CIP honoring of remitters, expansion, and ease of the delivery process, investment and housing financing facilities for non-resident Bangladeshis, international money transfer operators encouraged to set up drawing system and charge fees waived by banks and exchange houses. However, remittance flows are not increasing.
