Due to the depreciation of the taka and the government’s decision to provide incentives against remittance, expatriates send money to Bangladesh reached a new high of $18.32 billion in 2019. Remittances remained the only bright spot in the country’s economy in recent months, according to Bangladesh Bank officials, as other macroeconomic indicators such as export, import, private sector credit expansion, and revenue earnings struggled. Bangladeshis employed in international offices of the country’s shipping or airlines, or local mariners or aircraft pilots working in foreign shipping or airlines, will receive a 2% cash bonus on remittances sent home from abroad.
This fiscal year, the government has set aside Tk3,060 crore to provide incentives. No documents are needed to receive an incentive on remittance of up to $1,500, and it will be issued instantly on each money transfer to Bangladesh from abroad. If the remittance reaches $1,500, the recipient must have a copy of the sender’s passport and a copy of the sender’s appointment letter from a foreign business. Entrepreneurs may be required to request a copy of their trade licenses.
According to Bangladesh Bank data, remittance inflows increased by 20% to nearly $12.50 billion in the first eight months of the current fiscal year, compared to the same period the previous fiscal year. One of the reasons for the increase in inward remittance is a cash reward.
How Can Other Low And Middle-Income Countries Take Advantage Of Remittance By Facilitating Foreign Employees?
Some developing countries have pursued a policy of developing human capital to export to more developed parts of the world in recent decades. This community would be able to generate valuable foreign currency with online money transfer to Bangladesh and other countries, which would help the economy develop. Simultaneously, there is concern about how the money remitted to the government by the vast number of overseas workers is used. The advantages of remittance are well known, as it aids in the development of foreign currency reserves, the stabilization of exchange rates, and the facilitation of trade balances of payments.
The international community is working to reduce the cost of remittance services significantly. This campaign started in the late 2000s when the World Bank and Bank for International Settlements released the General Principles for International Remittance Services, the G8. Then the G20 adopted the so-called 5×5 goals, and several public and private sector projects were launched in this direction around the world. Bangladesh can increase its remittance by allowing expatriates to send money to Bangladesh online.