Remittance hits 10-month high
Remittance inflows hit a record most of $2.17 billion in May, that was the best since August this fiscal year, because of the hard-earned money sent by migrant staff amid the next wave of the Covid-19 pandemic.
Migrants sent 44 % higher remittance in May compared to the same period a year ago, when it had been $1.5 billion, Bangladesh Bank data shows.
With the May figure, the full total remittance inflow exceeded last fiscal year's total to stand at $22.8 billion, the best in one year.
Bangladesh received $18.2 billion in remittance in total in fiscal 2019-20.
In the wake of the Covid-19 pandemic, the remittance inflow, among the key barometers of the economy, dipped from March to May of 2020.
Appreciatively, the inflow rebounded in June and its own upward trend continued till last month just as the remittance senders are employing more proper stations amid lockdowns slapped simply by states and restrictions in movement.
According to central bank info, the migrants had sent their funds through 57 banks, including nine commercial banking institutions.
Last month, the highest amount of $639.36 million was sent through Islamic Lender Ltd as the second highest amount of $242.80 billion was sent through the state-own Agrani Bank.
The inflow of remittance, among the primary barometers of the economy, continues to rise at a time when the outflow of migrant workers for jobs abroad dropped by 69 per cent year-on-year to 217,669 in 2020.
According to Bangladesh Bank, the amount of total outgoing employees was 33,271 in May this season and it had been 64,259 in the same month this past year, a 48.22 per cent decrease in the number of the outgoing expatriates.
According to data of the Bureau of Manpower, Job and Training, 85,242 personnel left for jobs overseas by February this year.
Despite the reduction of outgoing staff, the remittance flow noticed a constant rise because of some initiatives of the government and bank authorities.
Mohammad Shamsul Islam, managing director and chief executive officer of Agrani Bank Limited, said the federal government has given 2 per cent incentives on remittance, which was a big factor behind this rise of the remittance inflow.
When the income of expatriates was decreasing at the start of the pandemic, this facility motivated them to apply proper channels greatly.
Meanwhile, due to the Covid-19 scenario, the hundi system possesses come to a halt as a result of the restriction on movements and in those days there was no other option to send funds without banking channels, which was also a reason behind the remittance influx.
Besides, different banks also have given some conveniences, including easy technical solutions.
"Alongside the two 2 % incentives by the government, we have also given additional 1 per cent incentives on the remittance. I think in addition, it worked very well," he added.
Islam went on to say that migrant workers have grown familiar with the formal channel for transferring their hard-earned funds.
