Bangladesh remittance inflow dips again belying efforts to woo expatriates

Remittance inflow showed signs of turning around early in May but finally the money sent by Bangladeshi expatriates in the month fell by 13 percent year on year to $1.88 billion.

Published : 1 June 2022, 06:06 PM
Updated : 1 June 2022, 06:06 PM

Inward remittances also marked a 6.23 percent fall compared to April, when the monthly amount crossed $2 billion on Ramadan and Eid-ul-Fitr.

The remittance inflow rose 36 percent year-on-year to $24.6 billion in in FY2021, leading the government to set a 35 percent growth target in the current financial year.

The government announced a series of measures to shore up the foreign currency reserves by boosting remittances amid a shortage and a rise in the value of the US dollar, but still the remittances in the July-May period decreased by nearly 16 percent year on year to $19.2 billion.

The reserves, currently hovering above $42 billion, are enough to pay import bills of six months at the current rate. But growing costs of import with the value of the US dollar rising has prompted the government to take steps to save the reserves.

As part of the efforts, the government recently said expatriate Bangladeshis will not need to show papers to send money and get the 2.5 percent cash incentives on remittances.