Remittance inflow decreased by 16 pc

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

share this news to friends