The importance of remittance, especially when people send money to Bangladesh, improves the country’s economy. When we consider the importance of remittance in our economy, we often consider progress and living standards.
We prefer to believe claims like “Bangladesh economy rides on remittances” because of such thoughts. What parts of this assertion are genuine, and the parts are false or only partly true?
It can’t possibly be the way of living. Per year income is the most commonly used indicator of a nation’s gross domestic product. International online money transfers to Bangladesh also act as an automatic stabilizer for the development of the economy.
According to the Bangladesh Bureau of Statistics, international money transfers to Bangladesh contributed around ৳8473 to our ৳1,795 for every capita GDP last financial year. This amounted to 5.5% of GDP per capita, and the total remittance received by Bangladesh in February 2021 is $1780.59, according to the Central Bank of Bangladesh, which is not insignificant. It is not, however, a ride.
What Is the Volume and Origin of Formal Remittance in Bangladesh?
The most important destination for long-term Bangladeshi migrants is the United Kingdom, which accounts for 5% of the remittance flow (nearly US$ 900 million).
When contrasting countries as destinations for migrant workers and as sources of official remittances, the idea does not seem entirely consistent. The United Kingdom and Canada, for example, are considerable remittance exporting countries, while other countries report more new immigrants.
What Are the Formal Money Transfer Channels to Bangladesh?
Remittances from labour migrants account for a significant portion of discretionary income in many emerging and developing economies. Remittances are an important source of external financing for many countries, outnumbering official development assistance and overseas investment. This article provides an update on money transfer services used by Bangladeshi expats in the United Kingdom and Canada and the reasons for their preferences. A survey was conducted from June 2020 to March 2021, and data were obtained from 126 respondents (56 in the UK and 70 in Canada). When it came to money transfers, the vast majority of migrants chose online to bank networks. Migrants say that online money transfer services like ACE Money Transfer are faster and provide a better exchange rate than banks.