Remittance rises in August, thanks to Eid

Remittance hit a 14-month high in August, mainly due to Eid-ul-Azha, in a development that may bring a sigh of relief for the government.

Last month migrant workers sent home $1.42 billion. The last time this high an amount was remitted was back in June last year, when $1.47 billion was sent. After that, the monthly remittance was $1-1.2 billion.

August's receipts are also an improvement of 20.34 percent from a year earlier and 26.79 percent from a month earlier, according to data from the Bangladesh Bank.

Expatriate Bangladeshis sent home more money because of Eid-ul-Azha and severe floods in many parts of the country, said a Bangladesh Bank official.

Besides, in recent times, the government and the central bank took various steps that also contributed to the jump in remittance. 

In the first two months of the fiscal year, remittance inflow increased 15.81 percent to $2.53 billion, according to the central bank statistics. In contrast, during the same time in the last fiscal year, remittance slumped 15.32 percent.

The government  and  the BB are  pursuing  further  facilitation and widening  of legitimate  remittance  channels  for  the  migrant workers abroad, said the central bank's latest monetary policy statement.

Further avenues bearing promise of significant   near-term gains in remittance inflows include promoting the sales of Wage Earners Bonds and Taka Treasury Bonds.

The bonds offer much better yields than what the migrant workers can get on their savings in their host countries. Loan facilities for apartment purchase  in  Bangladesh  can  also  be marketed  more  actively  to  attract  the  savings of migrant workers.

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

Remittance inflow in fiscal 2016-17 has been the lowest in six years. Migrant workers sent home $12.77 billion last fiscal year, down 14.47 percent year-on-year.