As the US dollar shortage persists, businesses in Bangladesh are increasingly finding it difficult to open letters of credit (LCs) since banks can’t supply the adequate American greenback needed to finance imports.
Remittance flow to Bangladesh rose to a five-month high in January as banks have given all-out efforts to mobilise dollars from abroad to tackle the stress in the foreign exchange market.
Unpredictability has become the new normal in a world afflicted by the forces of deglobalisation amidst rising geopolitical tensions.
Bangladesh received $1.7 billion in remittance in December, up 4.29 per cent year-on-year, central bank data showed today.
Outward remittances from Bangladesh through legal channels crossed the $100-million mark for the first time in 2021 as more foreigners are working in the fast-growing economy, data from a global organisation showed.
Bangladesh welcomed 2022 on a strong footing and was about to recover from the coronavirus pandemic in full swing and fire on all cylinders. In fact, economic activities were almost back to the pre-Covid level.
Mobile financial service providers (MFSPs) have been allowed to bring in wage earners’ remittance to Bangladesh, said the central bank today.
The burden of imported inflation and supply-side implications of reduced imports will have adverse implications for economic growth and welfare, particularly of marginalised people.
Bangladesh should train migrant workers on digital literacy so that they send remittance home through legal channels and using electronic platforms instead of turning to hundi operators, speakers said today.