Bangladesh receives $ 1.59 billion in 20-day remittance
Of the total amount, $ 1,224.2 million was earned in just 12 days of May
Expatriate Bangladeshis returned $ 1,588.78 million in the first 20 days of the current month, mostly due to Eid-ul-Fitr – the last religious holiday for Muslims.
Of the total amount, $ 1,224.2 million was earned in just 12 days in May, according to the latest data from the Bangladesh Bank.
In addition, expats sent $ 684.41 million in funds in the first five days of May alone.
The 20-day remittances figure was 84.18 million higher than for the whole of the same month last year.
Read also – Bangladesh Receives $ 684.41 Million In Money Transfer In Just 5 Days
“This is a special month for remittances as Bangladeshi expats send more money to their near and dear ones for Eid expenses,” said the spokesperson and executive director of the Bank of Bangladesh, Serajul Islam, at Dhaka Tribune.
Another reason for the rising trend in remittance income is the 2% cash incentive, he added.
From May 2 to 20, expatriate Bangladeshis sent $ 399.36 million through six state-owned banks; $ 1,154.16 million through private commercial banks; $ 29.45 million through two specialist banks and $ 5.81 million through foreign banks, according to central bank data.
Zaid Bakht, research director of the Bangladesh Institute of Development Studies (BIDS), said remittances will maintain a standard flow in the coming days as migrant workers are already accustomed to legal channels and benefit from the cash incentive. by 2%.
Remittances grew 39% year-over-year to $ 20 billion in the July-April period of the current fiscal year.
Bangladesh’s foreign exchange reserves also hit a record high amid the Covid-19 pandemic due to the growing trend in remittances.
Foreign exchange reserves stood at $ 45.10 billion as of May 3, according to central bank data. With the statement of reserves, it would be possible to honor import payments for more than 10 months.
Reserves have reached such comfortable levels that for the first time in its history, Bangladesh will trade $ 200 million with Sri Lanka, which is struggling to maintain a moderate foreign exchange reserve.
On Sunday, the board of directors of the Bank of Bangladesh approved in principle a $ 200 million currency swap project with the South Asian island nation.
Read also – Remittances to Bangladesh accounted for 6.6% of GDP in 2020
As the coronavirus tore the world apart in February last year, Bangladesh feared that remittances, which have become one of the economy’s lifelines, would take a heavy hit.
But remittances to Bangladesh accounted for 6.6% of its GDP in 2020, making it the eighth largest source of remittances of the year, according to a report by the Global Migration Knowledge Partnership. and development (KNOMAD).
Remittances declined from February to April of last year, when the pandemic was taking hold around the world.
Bangladesh earned $ 21.75 billion from expatriates last year – an 18.4% increase from 2019 – amid the Covid-19 pandemic.