Remittance hits 10-month high

Remittance inflows hit a record high of $2.17 billion in May, which was the highest since August this fiscal year, thanks to the hard-earned money sent by migrant workers amid the second wave of the Covid-19 pandemic.

Migrants sent 44 per cent higher remittance in May compared to the same period a year ago, when it was $1.5 billion, Bangladesh Bank data shows.

With the May figure, the total remittance inflow exceeded last fiscal year's total to stand at $22.8 billion, the highest in a single year.

Bangladesh received $18.2 billion in remittance in total in fiscal 2019-20.

In the wake of the Covid-19 pandemic, the remittance inflow, one of the main barometers of the economy, dipped from March to May of 2020.

Appreciatively, the inflow rebounded in June and its upward trend continued till last month as the remittance senders are using more proper channels amid lockdowns slapped by states and restrictions on movement.

As per central bank data, the migrants had sent their money through 57 banks, including nine commercial banks.

Last month, the highest amount of $639.36 million was sent through Islamic Bank Ltd while the second highest amount of $242.80 billion was sent through the state-own Agrani Bank.

The inflow of remittance, one of the main barometers of the economy, continues to rise at a time when the outflow of migrant workers for jobs abroad dropped by 69 per cent year-on-year to 217,669 in 2020.

According to Bangladesh Bank, the number of total outgoing workers was 33,271 in May this year and it was 64,259 in the same month last year, a 48.22 per cent decrease in the number of the outgoing expatriates.

According to data of the Bureau of Manpower, Employment and Training, 85,242 workers left for jobs abroad as of February this year.

Despite the reduction of outgoing workers, the remittance flow saw a constant rise thanks to some initiatives of the government and bank authorities.

Mohammad Shamsul Islam, managing director and chief executive officer of Agrani Bank Limited, said the government has given 2 per cent incentives on remittance, which was a big factor behind this rise of the remittance inflow.

When the income of expatriates was coming down at the beginning of the pandemic, this facility encouraged them to use proper channels greatly.

Meanwhile, due to the Covid-19 situation, the hundi system has come to a halt because of the restriction on movement and at that time there was no other option to send money without banking channels, which was also a reason behind the remittance influx.

Besides, different banks have also given some facilities, including easy technical services.

"Alongside the 2 per cent incentives by the government, we have also given additional 1 per cent incentives on the remittance. I think it also worked well," he added.

Islam went on to say that migrant workers have grown accustomed to the formal channel for transferring their hard-earned money.