Remittance inflow rises steadily on govt steps

Inflow of remittances continues to scale
new heights during the pandemic and riding on it the foreign exchange
reserves are also on the course to surpass the $41 billion milestone,
thanks to the government’s measures, including two percent cash
incentive for the remitters.

According to the data of Bangladesh Bank (BB), expatriates have sent
remittances of US$8,825.64 million in the first four months of the
fiscal 2020-21 which is 43.24 percent higher than the corresponding
period of the preceding fiscal 2019-20.

The country received $6,161.02 million remittances during July to
October in the fiscal 2019-20.

Besides, the monthly inflow of remittance hit an all-time high in
July, with the figure $2,598.21 million.

Regarding the recent remittance surge, Finance Minister AHM Mustafa
Kamal thanked the expatriate Bangladeshis on behalf of the countrymen
for their role to keep dynamic the economy of the country.

The finance minister alleged that when the inward remittance flow
started to witness a surge in an unbelievable pace in the first three
months of the current fiscal year (FY21), many became critical about
the fact that these are not right and would not become sustainable,
even many international agencies started to echo with them.

“But, at the end, I called upon the World Bank in their Annual
Meetings to give recognition to the efforts of these remittance
warriors. Now the World Bank is saying that remittance inflow to
Bangladesh will increase in 2020 and the country will secure the 8th
position this year in this regard,” he added.

Kamal said the report also mentioned that the country’s remittance
inflow will witness 8 percent growth in the current year.

Talking to BSS, Bangladesh Bank Chief Spokesperson M Serajul Islam
said the flow of remittances into the country shows upward trend as
the BB has taken measures, including two percent incentive, to
streamline the legal channel for encouraging Non Resident Bangladeshis
(NRBs) to send money to the country.

In the national budget for the fiscal 2019-20, the government
announced 2 percent cash incentive on remittance. Due to huge
responses, the government has continued the 2 percent incentive on
remittance sending from abroad for the fiscal 2020-21.

According to the BB data, expatriate Bangladeshis sent $18,205.01
million remittances in the fiscal 2019-20, which is 10.85 percent
higher than the corresponding period of the preceding year.

The country received $16,419.53 million remittances during the fiscal 2018-19.

Islami Bank Bangladesh Limited (IBBL) Deputy Managing Director Abu
Reza Mohd Yeahia said the inflow of remittance is increasing day by
day as the authorities concerned, including banks, are accelerating
their activities to bring back the remittances through the legal
channel.

“We are trying to make easier the process of legal channels to
expedite the remittance flow. We are signing agreements with different
exchange houses to bring the remittances in automated ways,” he added

Founding President of the Bangladesh Forum Qatar (BFQ) Iftekhar Ahmed
said the government has also played a big role in increasing inward
remittances.

“The government introduced a 2 percent cash incentive in July 2019 to
encourage the inflow of remittances through legal channels. Expatriate
Bangladeshis have become encourage for the initiative and now they
send money through the legal channel,” he added.

Welcoming the initiative of the Bangladesh government to give 2
percent cash incentive for remittance senders, Rasel Mojumder, a
migrant worker in Qatar hailing from Kaichuti village under
Chouddagram upazila in Cumilla district, urged the government to take
more initiatives for ensuring better workplace for the Bangladeshi
female workers abroad.

Expatriate Bangladeshis sent around $2,112.44 million in October of
the fiscal 2020-21.

Among the amount, six state-owned commercial banks – Agrani, Janata,
Rupali, Sonali, Basic and BDBL – received $462.59 million while one
state- owned specialised bank- Bangladesh Krishi Bank- received $33.56
million.

Of the state-owned banks, Agrani Bank received $201.92 million, Janata
Bank $79.68 million, Rupali Bank $46.63 million, Sonali Bank $134.25
million and Basic Bank received $0.11 million. Besides, the
expatriates have sent $1,604.69 million through private commercial
banks.

Among the private commercial banks, Islami Bank Bangladesh Limited
(IBBL) received the highest amount of $748.57 million whereas Dutch-
Bangla Bank (DBBL) received $238.15 million.

On the other hand, the expatriates have sent $11.60 million through
the foreign commercial banks.