Bangladesh remittance inflow shows signs of recovery

[Bilal9]

FE REPORT | October 29, 2023 00:00:00​

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The inflow of wage earners remittance during the first three weeks of this month (until October 20) stood at US$ 1.25 billion, nearly equivalent to the receipts of the four-week period of the previous month (September 2023), according to Bangladesh Bank data.

The September remittance hit 41-month low at $1.34 billion since April 2020 when it was only $1.09 billion.

People familiar with the matter expected the inflow by the end of October to increase to some extent from that of the September receipts, riding on social programmes especially weddings, Durga Puja and the revised dollar-Taka exchange rate by BAFEDA (Bangladesh Foreign Exchange Dealers Association).

The remitters now receive an additional incentive of 2.50 per cent from banks apart from the government's existing cash support as banks have stepped up efforts to give a much-needed fillip to remittance earnings and mitigate the foreign exchange crisis.

The BAFEDA and the Association of Bankers, Bangladesh (ABB) took the decision in a joint meeting on October 20.

A central banker said that at least $300 million in remittance may be added during the last week of October with a three-week total of $1.25 billion.

To attract remittances, the government had introduced a 2.0 per cent incentive in 2019 and later raised it to 2.5 per cent. Now the banks would provide up to 2.5 per cent from their own coffers.

Remittance is the cheapest source of US dollars for Bangladesh and is a key pillar of the economy. But inflows dropped in September despite a record outflow of workers in recent times.

The US currency has been gaining against the taka for the past one and a half years amid depleting foreign exchange reserves, driven by higher import bills against lower-than-expected remittance and export receipts.

Bankers and experts attributed the decline to the higher exchange rate of the US dollar in the open market, which is attracting expatriates towards informal cross-border money-transfer channels like "hundi".

 

[saif]

We should somehow convince the Middle Eastern countries to take more unskilled/skilled workers from Bangladesh in place of non-muslim workers from India. This will surely increase our remittance inflow and help our economy in a big way.

 

[Bilal9]

We should somehow convince the Middle Eastern countries to take more unskilled/skilled workers from Bangladesh in place of non-muslim workers from India. This will surely increase our remittance inflow and help our economy in a big way.

We need to reduce the looting in the Immigration Dept. and people who give out the http://baira.org.bd/ permissions. These govt. haramis are the biggest gareebon ka huq lootnewalla scums and should be shot.

Someone pointed out that each of our unskilled workers spends three or four lakhs to go to the gulf, whereas Indians spend only Rs. 50,000 per person. You can guess where the money is going and its not the BAIRA labor agent folks.

And of course vocational training is a must, like for plumbing, electrician and HVAC trades. Those guys make more money than the street cleaners.

Money is still coming into the economy via Hundi - but its not going to the banks.

Hence the low reserve situation.

 

[saif]

We need to reduce the looting in the Immigration Dept. and people who give out the http://baira.org.bd/ permissions. These govt. haramis are the biggest gareebon ka huq lootnewalla scums and should be shot.

Someone pointed out that each of our unskilled workers spends three or four lakhs to go to the gulf, whereas Indians spend only Rs. 50,000 per person. You can guess where the money is going and its not the BAIRA labor agent folks.

And of course vocational training is a must, like for plumbing, electrician and HVAC trades. Those guys make more money than the street cleaners.

Money is still coming into the economy via Hundi - but its not going to the banks.

Hence the low reserve situation.

Another thing that has caught my attention is that the govt. is sending scores of lady workers as house maid for Saudi Arabia. The govt. does not have one iota of self-respect. In Saudi Arabia's history book it will be written that Bangladeshis used to work for them as house maid. Pathetic.

 

[IndianLite]

Another thing that has caught my attention is that the govt. is sending scores of lady workers as house maid for Saudi Arabia. The govt. does not have one iota of self-respect. In Saudi Arabia's history book it will be written that Bangladeshis used to work for them as house maid. Pathetic.

Better than being prostitutes in Bangladesh or India!

 

[saif]

Better than being prostitutes in Bangladesh or India!

Saudis hire prostitutes from the West also. But do the west send their women to Saudi to work as house maids?