Huge remittances came in Ramadan

• Expatriate income in March was Tk 21 thousand 589 crores
• It has increased by 8.5 percent compared to March last year
• The desired remittance did not come even though it increased on the occasion of Ramadan
• One lakh new workers went abroad in eight months

According to the report released by the Central Bank yesterday, 201.77 million dollars of remittances came in March. In local currency (107 taka per dollar) which amounts to taka 21 thousand 589 crores.

Before this, the last remittance of more than two billion or 2 billion dollars came in August last year. 203 crore (2.03 billion) dollars came in that month. The amount of remittances in March was 45.72 million dollars more than the previous month of February.

In February, remittances came in at 1.56 billion 1.2 million dollars. In addition, compared to March of the previous year (2022), remittances have increased by 8.49 percent or 15.8 million dollars. In March last year, expatriate income was 185 million 97 million dollars. Even if the remittance flow increases on the occasion of Ramadan, it is not as expected. Because the remittances coming in March are slightly less than July, the first month of the current financial year. But in the last 9 months, a large number of workers have gone abroad.

According to data from the Bureau of Manpower, Employment and Training, there was a huge export of manpower last June. In that month, the number of workers who went to different countries of the world was 111 thousand 539 people. Which is 44 percent more than the previous month. As a result, in the first month of the current fiscal year (2022-23), in July, the expatriate income of $209.63 million came to the country. This is about $260 million more than the previous month, June. After that, the trend of manpower export continued but expatriate income collapsed. As remittances go through illegal channels, the people concerned believe that expatriate income is not coming to the country in keeping with the export of manpower.

A review of data from the Bureau of Manpower, Employment and Training shows that last year (in 2022) 11 lakh 35 thousand 873 workers went abroad. According to the updated information till March 15, 1 lakh four thousand 513 workers went abroad in eight and a half months (July-March). In 2021, many workers were stopped from being sent due to Corona. In contrast, a large number of workers return home. But last year started going abroad again.

According to the data, a large part of the workers who left in recent months went to Europe-America. Apart from this, some countries including South Korea and Kuwait, which have high currency value, have exported manpower after a long time. Remittances from these countries are expected to be higher than countries like Saudi Arabia and Malaysia. But remittances are not coming as expected.

By reviewing the data of Bangladesh Bank, it can be seen that in the recently ended March, 23.46 million US dollars came through state-owned banks, 4.5 million 60 thousand US dollars came through a specialized bank, 173.15 million US dollars came through private banks and foreign banks. 65 lakh 20 thousand US dollars remittance came through.

The central bank has taken various initiatives to increase remittances. The central bank is encouraging various ways to send remittances through legal channels. The latter has relaxed the conditions for filling Form C to bring remittance income to the country in return for services. Besides, service sector entrepreneurs and exporters have been given the opportunity to bring 20 thousand US dollars or equivalent amount of foreign currency into the country without declaration.

Among the steps taken to increase remittances are two and a half percent cash incentives against wage earners remittances through legal channels, CIP awards to remittance senders, expansion and simplification of remittance disbursement process as well as investment and housing financing facilities for non-resident Bangladeshis, international money transfer operators under fintech systems. Encouraging setting up of drawing arrangements with Bangladesh Banks and waiving charges of banks or exchange houses for sending remittances.  

In the first 9 months of the financial year 2022-23 (from July to March), total remittances came in at USD 1,630 crore. In the same period of the previous financial year, remittances came in at 1,529 million dollars. During the period under discussion, remittances of US$ 740 million more than last year. In the outgoing fiscal year 2021-22, the total remittances received in the country were 2 thousand 103 million 17 million US dollars. Earlier, the amount of remittance collection in the financial year 2020-21 was 2 thousand 477 crore 77 million US dollars.