Remittance grows 24pc in eight months
Record $428m received in February
Monjur Mahmud
Remittance hit a record US$428 million in February, an all-time high in a single month, as the inflow grew by around 24 percent during July-February period of the current financial year. Non-resident Bangladeshis (NRBs) sent $2,998.03 million in the first eight months of the 2005-06 fiscal year against $2,422.54 million during the same period of last financial year, according to central bank statistics. With the higher growth in remittance, the foreign exchange reserves reached $3,092.51 million as of yesterday. The reserves will come down below the $3 billion mark as the central bank may clear around $300 million Asian Clearing Union (ACU) payment on Thursday, sources said. Bangladesh Bank continues its efforts to encourage NRBs to send their money through banking channels, helping the country to see a strong growth in remittance so far. According to BB sources, ongoing devaluation of taka against US dollar will help maintain present trend in remittance inflow in the next couple of months. Of the amount sent in February, $284 million came through private commercial banks (PCBs) and $184.82 million through nationalised commercial banks (NCBs). The rest of the amount came through foreign commercial banks (FCBs). "As PCBs give better rates than the NCBs against foreign currencies, NRBs are increasingly using private banking channels to send money home," said a central bank official, adding the share of NCBs in remittance business is on the decline. The PCBs have become more aggressive in remittance business providing quick and reliable services and attracting the Bangladeshis working abroad to send money home through formal channels. "Some of the PCBs are taking services of the globally renowned money transfer companies that have networks around the world and have extended their services to rural Bangladesh," said a top executive of the private bank. "As a result, remittance has become a major source of their incomes." Remittance has become a good source of income for some foreign banks with strong network abroad. Remittance inflow was $3,848.29 million in the last financial year. According to sources, NRBs send over US$ 7 billion a year and a significant portion of the total amount still comes through hundi, an illegal way of money transfer. There are further scopes to increase remittance through banking channels, bankers observed.
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