Our expatriates are relentlessly providing oxygen to our country’s economy by sending remittances. However, unfortunately, expatriates are attracted to the hundi due to illegal stay abroad and multiple exchange rates which have caused a decrease in remittance flows.
Experts opined that besides, the exchange rate gap between the formal and informal channels has invigorated remitters to use hundi and send money through such illegal channels. On the other hand, some money exchangers are involved directly with illegal hundi businessmen, which helps in money laundering.
Remittance from expatriates, one of the main sources of foreign exchange reserves, has started to increase again after various measures taken by Bangladesh Bank, including tough steps against illegal hundi money transferring business. In January 2023, expatriates sent an average of $62.90 million every day.
The government should take
essential steps to raise the
speed at which the money
can be remitted by the
expatriates to their loved
ones back home
In order to put a halt to the hundi medium, the government should augment the current cash incentive to further encourage them and discourage the hundi channel for which the government loses a huge amount of revenue.
The government should make it count and along with other related stakeholders, plus the banking sector, work in a synchronised manner, likely, inward remittance will continually surge. The government can also take essential steps to raise the speed at which the money can be remitted by the expatriates to their loved ones back home. Each bank can develop its app for the electronic transference of remittance funds as quickly as possible. The central bank can also think of its network by giving hundi channel licences which will lead to creating more avenues to draw remittances from various sources. Therefore, more inward remittance flows will not only help to surge our foreign exchange reserves but will also enhance our balance of payments.