In the first ten months of the current fiscal year, remittance inflow has decreased by 16.03 percent, compared to the same period of last fiscal year, finance minister AMA Muhith said on Thursday.
Presenting the proposed budget for 2017-18 fiscal, he told the parliament that in fact, most of the developing countries in the world except some Latin American and Caribbean countries have experienced decline in remittance inflows during the last two consecutive years. Due to low oil prices and contractionary fiscal policies adopted by some governments, remittance inflow to South Asia from GCC countries has decreased notably.
Furthermore, weak growth in countries of Europe and Russian Federation, deflation of Euro, adoption of anti-immigration policies by many countries, various hindrances in remittance transfer, relative benefits of remitting money though informal channels and controlled exchange rate policy of many countries have negatively impacted the remittance inflow.
Strategy for Increasing Remittances
Bangladesh is one of the top remittance recipient countries in the world. Considering its importance in economic development of the country, we have undertaken different measures to increase remittances.
Some of the important steps include reducing cost of remittance transfer, improving remittance management efficiency of 42 overseas banking units and exchange houses, strengthening drawing arrangement between Bangladeshi banks and the local banks of the countries where expatriates are working and motivating the workers to remit through Probashi Kallyan Bank.
There is a ray of hope in the projections of international organizations that global remittance inflows to developing countries will likely recover in 2017 and achieve 2 percent growth. I firmly believe that all these initiate together with increasing trend global growth will have positive impact on our remittance inflows