Photo: Collected
A 13.1 percent growth in the country’s remittance inflow in the six months from March to August this year has brought relief to the foreign exchange market. During this period, expatriates sent a total of $18.94 billion, which is $2.2 billion more than the $16.74 billion of the same period of the previous year. According to updated Bangladesh Bank data, earnings rose compared to last year in five of the six months under review; among these, the highest growth of 22.3 percent was achieved in August.
Month-wise picture of remittance earnings
- March: $3.75 billion (13.6% more than the previous year’s $3.3 billion).
- April: $3.13 billion (13.8% more than the previous year).
- May: $3.43 billion (15.5% more than the previous year).
- June: Earnings were almost unchanged; $2.81 billion came in (it was $2.82 billion in June of the previous year).
- July: $2.86 billion (15.3% more than the previous year).
- August: $2.96 billion (22.3% more than the previous year’s $2.42 billion, which is the highest in the six months).
Top source countries
In the period under review, five countries were the main sources of remittance earnings, from which about 60.7 percent ($11.5 billion) of total remittances came. The country-wise figures:
- Saudi Arabia: $3,080.85 million
- United Kingdom: $2,940.27 million
- United Arab Emirates: $2,267.22 million
- United States: $1,716.54 million
- Malaysia: $1,487.06 million
Bangladesh Bank’s statement and assessment
Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan told BSS that this steady rise in remittances is highly positive for the country’s external sector and an expression of expatriates’ growing confidence in the legal banking system. He mentioned that the government and Bangladesh Bank have jointly taken various steps to make sending money through legal channels easy, fast and convenient, as well as to discourage illegal channels such as hundi.
He further said this rise in remittance earnings is the result of improving the quality of banking services, simplifying the sending process and strengthening the legal foreign exchange market. This inflow of funds is playing a role in maintaining economic stability, besides increasing foreign exchange liquidity in the country. If the remittance inflow strengthens, the balance of payments will improve, foreign exchange reserves will be strengthened and stability will return to the external sector. He expressed the hope that the government’s initiatives to reform economic management and restore confidence in the financial sector will further encourage expatriates to send money through banking channels.
Historical context and current situation
It may be mentioned that manpower export from Bangladesh formally began in 1976 with the sending of workers to the Middle East through Shaheed President Ziaur Rahman. Over the course of time, the employment of Bangladeshi workers has expanded to various parts of the world and its importance in the national economy has increased manifold. At present, more than 1.5 crore Bangladeshis are working in 176 countries of the world, and the remittances they send are one of the country’s main foreign exchange-earning sectors.
