Despite the pandemic, expatriates send money to Bangladesh to support families in their home country. Last month, overseas Bangladeshis sent $1.91 billion in remittances, rising 50.16 percent from the same month the previous year. According to the Bangladesh Bank’s latest data, Bangladesh received $1.78 billion in remittances in February, with the figure for March being 7.63 percent higher.
In the current fiscal year’s July-March period, remittance inflows climbed by 35.10 percent to $18.60 billion, compared to the same time the previous fiscal year. Money transfer to Bangladesh from Bangladeshis diaspora is $22.75 billion in remittances over the first 11 months of the current fiscal year, representing a 40.1 percent increase as of April this year.
The continuation of monetary incentives at a rate of 2% on expatriate income promised by the prime minister and the streamlining of the remittances routing process contributed to the increase in remittances, Kamal stated in his budget speech.
What Is The Importance Of International Money Transfers To The Economy Of Bangladesh?
Remittances, specifically online money transfers to Bangladesh, have been one of Bangladesh’s most important economic factors in recent years. They assist in balancing the balance of payments, rising foreign exchange reserves, raising national savings, and improving money velocity. Remittances have contributed roughly 35 percent of export earnings for the past two decades. Furthermore, it is bigger than foreign aid, which helps to reduce reliance on foreign aid. In Bangladesh, remittances have gained traction in recent years and are now the second-largest source of foreign cash earnings behind the textile industry.
When the cost of imported raw materials is subtracted from the garments sector’s foreign exchange earnings, remittances become the sign: the biggest source of foreign exchange earnings. Remittance earnings are increasing every day, albeit slower than emigration from Bangladesh, owing to an increasing number of unskilled or semi-skilled laborers in overseas migration than experts.
The percentage of remittances in GNI (Gross National Income) is steadily increasing. Remittances have a favorable impact on practically all of a country’s macroeconomic indices. Though there are certain disadvantages to remittance earnings, such as brain drain, its overall contribution to Bangladesh’s economy is significant. In the recent month of 2021, expatriates send money to Bangladesh online is increased by 50% and reached above 22.34 billion dollars. And this upward trend in remittance is experienced since the last 11 months of the fiscal year.