Remittance inflow sees highest growth in March in 8 months

Expatriate Bangladeshis sent $1.86 billion to the country in March, which was the highest in eight months, a report released by Bangladesh Bank on Sunday (April 3) revealed it.

In July last year, remittance amounting to $1.87 billion, was sent to the country. After the decline in remittance inflow over five consecutive months, it went up in December and January, but fell in February this year.

In February, the remittance inflow was the lowest in 21 months. The country received $1.49 billion in remittances that month.

However, the foreign currency inflow dropped by 2.66% year on year in March.

Sources at the Bangladesh Bank said remittance inflow has increased owing to the holy month of Ramadan.

Remittance sent by more than 1.25 crores of expatriate Bangladeshis living in different countries of the world play an important in the country’s economy. The contribution of remittance to the country’s economy is 12 per cent.

The government has been providing 2 per cent cash incentive from 2019-20 fiscal to boost inflow of remittance. It was raised to 2.5 per cent from January this year.

It means if an expatriate sends remittance worth Tk 100 through the official channels, he will receive Tk 102.50 in Bangladesh.

Bangladesh Bank spokesman and executive director Md Serajul Islam said, “Incentives have been raised. There are two Eid festivals ahead. Overall remittance inflow will go up in the coming months.”