Where From Is Billions Of Money Coming As Remittance To Low And Middle-Income Countries?

Expatriates are significant contributors who send money to Bangladesh to support the economy of the country. Human resources exports boost remittances, and unemployment is reduced. Bangladesh is currently the world’s sixth-largest migrant producer in the world. Bangladesh is ranked ninth among the top ten recipients of remittances.

According to BMET’s figures, between 1976 and 2020, immigrants received a total of 232 billion US dollars in foreign exchange from various countries around the world. Workforce exports are the second largest contributor to Bangladesh’s GDP after the garment industry. In 2017, a record number of 10 lakh 8 thousand 525 Bangladeshi workers left the country.

How Is Remittance Helpful To Increase Foreign Currency Reserves Of Bangladesh?

According to BB numbers, the country’s foreign currency reserves reached an all-time high of $38.48 billion on August 26 due to a surge in online money transfers to Bangladesh from developed countries.

Transfers from migrant workers have gradually become a cornerstone of the Bangladesh economy’s strength. Between 2007 and 2017, an average of 590,000 migrant workers left Bangladesh each year, and 8% of households have at least one foreign migrant. In families with foreign migrants, remittances account for 60% of income.

Without remittances, 41% of households with at least one family member working as migrant worker will be poor.

What Is The Trend Of Remittance To Bangladesh During FY20?

Remittance inflows reached a new high of $18.20 billion in FY20, according to Bangladesh Bank numbers, despite Covid-19 battering most global economies.  Experts, on the other hand, believe that the figure does not imply that Bangladesh will continue to maintain a higher proportion of remittances in the coming months. With the return to normalcy of air travel in February, remittance inflows started to decline, reactivating the informal networks for money transfers to Bangladesh after an imposed halt due to the worldwide coronavirus disease outbreak.

The effect of the Covid-19 pandemic on global economies, as well as migrant workers coming back home, especially from European countries, will be a shock to our economy, according to the economist. They asked the government to offer financial assistance to returning migrant workers who choose to be self-employed or use their skills in the local economy. One of the most positive impacts of the pandemic is people started to send money to Bangladesh online to their families due to a ban on international travel and transportations.