Remittance rises 17pc

Inward remittance has bounced back strongly in the just concluded fiscal year, thanks to depreciation of the taka against the US dollar.

The country received remittances worth $14.98 billion in 2017-18, up 17.31 percent from the previous year, according to Bangladesh Bank data.

Remittance is a major source of foreign currency for Bangladesh and its descent since fiscal 2015-16 became a matter of concern for the government.

In 2016-17, the receipts were the lowest in six years -- $12.77 billion.

The recovery of remittance has come up as a relief for the government when the financial sector is facing an acute shortage of dollar, a Bangladesh Bank official said.

He said the depreciation of the taka against the greenback played a major role to encourage migrants to send home more remittance in the last fiscal year.

On June 30, the interbank exchange rate was Tk 83.75, which was Tk 80.60 a year earlier.

Bangladeshis living abroad are remitting more money through formal channels because of higher rate offered by local banks, the BB official said. The majority of the banks are facing a shortage of greenback for the last few months due to spiralling import payments against falling export earnings.

So, the banks are putting in their best efforts to bump up remittance inflows through their respective channels, the BB official said.

At the same time, the central bank has strengthened its surveillance on hundi, the illegal outlet that many turn to for moving funds cross-border, he said.

“This has also given a boost to the remittance inflows,” the central banker said.

A strong pick-up in global economic activities, especially in the Middle Eastern nations, also helped the country maintain the upward trend, according to him.