July 2, 2022

The monthly remittance inflows increased by almost 11 per cent to $1.12 billion in the first month of the current fiscal year 2017-18 compared with the same month of the last FY 2016-17.

In July last year, the amount of inward remittance was $ 1 billion.

Bangladesh Bank officials termed the trend as positive after passing a disappointing last fiscal year in remittance earnings with negative growth by 17 per cent.

In FY 2017, the country received a total of $12.77 billion in remittance against $14.93 billion in previous fiscal year, according to the data of the central bank.

They also termed the growth as temporary phenomena as they could not identify the actual reasons behind the positive change in remittance earnings.

The inflows of remittance may have increased due to increased monitoring and drives of the central bank against illegal money transfer activities by the mobile financial services, they said.

Expatriate Bangladeshis may also have sent higher amount of money to the country ahead of Eid-ul-Azha, the second largest religious festival of Muslims, as family members of the expatriates need extra money to buy sacrificial animals.

A high official of the central bank said that it was not possible to comment on the rise of remittance inflows just taking the figure of one month.

It will take two-three months more to understand the trend whether it will sustain or not, he said, adding that remittance earnings may also drop next month as there was no major changes in the situation under which remittance earnings dropped last year.

According to the Bangladesh Bank data released on Tuesday, remittance inflows, however, declined compared with previous month of June.

In June, expatriate Bangladeshis sent $1.21 billion in remittance.

While unveiling the monetary policy statement for the July-December period, BB governor Fazle Kabir said that the central bank would face two probable risks while implementing its monetary policy this fiscal year – one was a non-stop large investment in national savings certificates and bonds another was a downward trend in inward remittances.

‘The Gulf countries and the United States have recently strengthened their anti-money laundering and combating financing of terrorism-related rules that plunged the expatriate Bangladeshis into a difficult situation to repatriate their money home,’ Kabir said.

The BB is discussing with Egmont Group and Asia Pacific Group to resolve the issue, he said.

The downward trend in the inflow of remittance and export growth has also created a deficit in the current account balance from the surplus position, the BB governor said.

According to the BB data, in July this year the private commercial banks received $814.81 million in inward remittance, while the state-run commercial banks got $276.67 million, foreign commercial banks $14.27 million, and specialised development banks $9.82 million.

Islami Bank Bangladesh received the highest amount of remittance — $216.52 million— among the private commercial banks, while Agrani Bank got the highest amount — $107.80million — among the state-run banks.

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