The depreciation of taka has led more and more expatriate Bangladeshis to opt for sending money through legal channels
Remittance inflow hit record $16.4 billion in the just concluded fiscal year (FY) 2018-19, thanks to the continuous depreciation of taka against the US dollar.
The depreciation of taka has led more and more expatriate Bangladeshis to opt for sending money through legal channels.
The inflow was 9.47% higher compared to last fiscal year. The remittance in 2017-18 fiscal year was $14.98 billion, according to data of Bangladesh Bank.
Central bankers have said as the exchange rate has increased significantly in recent times, expat Bangladeshis felt encouraged to remit enhanced amount of money to their dear and near ones.
The inflow of remittance has increased due to various steps taken by the central bank to stop hundi and high rates of dollar in the local market.
Before this year’s bumper remittance, Bangladesh received highest $15.32 billion remittance from expatriates in 2014-2015 fiscal year.
The country received $12.76 billion in remittances in FY17 and $14.93 billion in FY16.
The record $1.76 billion remittance by the expatriates in May, the month that immediately preceded Eid-ul-Fitr, one of the biggest religious festivals of the Muslims, also helped attaining the record volume of remittance in the last fiscal year, Bangladesh Bank Spokesperson and Executive Director Serajul Islam has told Dhaka Tribune.
Appreciation of the dollar in the country’s local market against taka is a major stimulus for sending more remittance through legal channels, a Bangladesh Bank high official has said.
The interbank exchange rate of a US dollar increased to Tk84.5 on Wednesday from Tk83.9 at the beginning of January this year.
The government has allocated Tk3,060 crore in the budget for the fiscal year of 2019-20 to provide 2% incentive against remittance receipts and to encourage the expatriate workers to send more and more money through legal channels.
Bankers hope that remittance will increase further in the upcoming days due to the incentive.
Source: Dhaka Tribune.
