July 2, 2022

Remittance Inflow Crosses $ 15 Billion in 2018

Bangladesh has received the foreign currency of over $ 15 billion in 2018, increased the inflow of remittance from that of the last year.

The remittance inflow has substantially increased compared to that of the previous year despite fall in overseas employment, according to Bureau of Manpower, Employment and Training.

The country received increasing inflow of remittance in 2018 mainly due to huge overseas jobs in 2017, said BMET director general Salim Reza.

He said that the highest record of over 10 lakh workers went abroad in 2017 when the country received $ 13.52 billion.

Bangladeshi migrant workers from the Kingdom of Saudi Arabia sent the highest remittance which was followed by consecutively the United Arab Emirates, the United States of America, Kuwait, Malaysia and the United Kingdom.

Islami Bank Bangladesh Ltd has been top receiver of the remittance in 2018, according to Bangladesh Bank data.

Remittance has become a major contributor to the Bangladeshi economy. As the migrant workers from Bangladesh gradually increased over the years, the amount of annual remittance to the country significantly rose, according to World Bank.

Migrant rights activists called upon the government to provide incentives to encourage the migrant workers sending their remittance trough formal banking channels through demand draft, traveler’s check, telegraphic transfer, postal order, direct transfer and Automatic Teller Machine.

Hundi or money carrier system is prevalent as informal process of remittance sending in most cases. The most popular reasons behind preference towards Hundi system is the absence of any transaction charges, its fast delivery and the opportunity to maintain confidentiality.

Grooming skilled workers for overseas jobs, reducing migration cost and bringing good governance in migration sector could ensure sustainable remittance flow, said migration experts.

More than 1.2 crore Bangladeshi workers have gone abroad with jobs since 1976 and most of them were employed in Middle East countries.

Refugee and Migratory Movements Research Unit in its migration trend report projected that the remittance would be increased by 15.59 per cent in 2018.

RMMRU founding chair Tasneem Siddiqui, presenting the report said workers sent remittances worth US$ 14.34 billion during the January-November period of the current year.

‘If the trend continues, the amount of total inward remittances may stand at about US$ 15.64 billion in 2018,’ she said, adding that there were many factors including exchange house rate, workers’ job status, and economic conditions of employing countries behind increasing remittances.

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