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Remittance dropped by 19pc in 1st quarter

Published : 03 Oct 2021 10:06 PM | Updated : 05 Oct 2021 12:20 PM

Remittance inflow dropped by 19.44 percent to stand at $5.41 billion during July-September period of the current fiscal year 2021-22.

In the same time in the previous fiscal year, expatriates sent home $6.71 billion.

Expatriates sent home $1.81 billion in August this year. Remittance has reduced by $ 61.38 million or 3.28 percent from $1.87 billion in July this year. In September 2021, remittance was $1.72 billion.

Experts said remittance witnessed a negative growth due to the global epidemic.

Read more: Diversifying remittance growth

They said that the coronavirus had taken a terrible shape in the last fiscal year, at that time everything had come to a standstill. 

After that, many companies and industries had closed down, he said adding that, in this, the companies cut off all the debts of their employees. 

Many expatriates returned home with more money which resulted in the flow of remittance increasing during the corona pandemic, experts said adding that, now many of them returned abroad for works, they mentioned.

Since everything is slowly becoming normal, the expatriate income will increase again in the near future, they said.

In the just concluded fiscal year (2020-21), the remittance inflow hit all-time high to cross $20 billion for the first time.

Experts said the expatriates have recently sent more money to meet their families’ expenses including the higher treatment cost of coronavirus infection which have pushed remittance up this fiscal.

They said remittances from the informal sector to legal channels have increased due to the government's cash incentives and restriction of foreign travel for corona pandemic.

They said expatriates are sending money to their homes continuously despite the coronavirus pandemic as the government has provided various supports to the remitters including 2 percent additional cash incentive.

This will significantly increase the remittance inflow through legal channels and discourage the ‘hundi’ business, they said. 

Despite worsening Covid-19 pandemic situation around the world, remittance inflow in the country hit a record growth to stand at 24.77 billion for the first time in the fiscal year 2020-21.

Bangladeshi expatriates sent $6.57 billion more money in fiscal 2020-21 compared to the corresponding period of the last year, when it was $18.20 billion, Bangladesh Bank data shows.

Read more: $1.81b remittance comes in August

Bankers said that expatriates had been sending more money than other time as the income of many of their families decreased due to the coronavirus pandemic.

On the other hand, many expatriates returned home permanently with their savings during the pandemic. It also helped boost remittance flow, they added.

They said that this was the highest yearly remittance received in the country’s history that helped push foreign exchange reserves up to $48.04 billion recently. Definitely it is a very good news for us, they added.

Bangladeshi expatriates sent home $11.65 billion in FY11, $12.84 billion in FY12, $14.46 billion in FY13, $14.23 billion in FY14, $15.31 billion in FY15, $14.93 billion in FY16, $12.77 billion in FY17, $14.98 billion in FY18, in $16.41 billion in FY19 and $18.20 billion in FY20 respectively, Bangladesh Bank sources said.

More than 1.02 crore Bangladeshi expatriates are currently working in some 174 countries across the world, mostly in the Middle East.

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