Remittances drop further 7.4% in October

[my2cents]

Yes you are right talking about the scenario in India.

Accurate pre-dik-sun.

India is as vulnerable as the next nation. I was just pointing to upcoming holiday season to be below normal and a course correction is long time away.

 

[bluesky]

I was able to follow the first two sentences.
whats a hundi remittance?

why would expats pay for BD exporters loan?

No, it is not that the BD expatriates pay the BD importers any loans.

European exporters introduce their clients to EU Banks. BD importers import goods under a deferred payment system whereby an EU Bank pays the money in cash to an EU exporter.

The importer gets a time lag for the repayment of money in dollars.

Now, many BD importers are rushing to pay back the money in dollars to EU banks. Why so hurry? It is because Taka is continuously losing strength against the dollar. If they make delayed payments, they pay more money in Taka.

The Bangladesh Bank is now unwilling to sell them dollars because it is in short supply. So, they go to a Hundi Bank (unregistered and unlawful). Now, think of three parties as written below:

- I : Importer
- H: Hundiwala
- E: A BD Expatriate working abroad

- E does not send money to BD via a bank because the govt rate may be Tk 110 for a dollar. He asks a Hundi (H) agent. His rate may be Tk120 per dollar. So, E sells his dollars to H at a higher rate

- H collects the money in Riyal and sells it to I at, say, Tk125 to a dollar. H sends millions of dollars to the designated Bank accounts in the EU.

 

[BananaRepublicUK]

No, it is not that the BD expatriates pay the BD importers any loans.

European exporters introduce their clients to EU Banks. BD importers import goods under a deferred payment system whereby an EU Bank pays the money in cash to an EU exporter.

The importer gets a time lag for the repayment of money in dollars.

Now, many BD importers are rushing to pay back the money in dollars to EU banks. Why so hurry? It is because Taka is continuously losing strength against the dollar. If they make delayed payments, they pay more money in Taka.

The Bangladesh Bank is now unwilling to sell them dollars because it is in short supply. So, they go to a Hundi Bank (unregistered and unlawful). Now, think of three parties as written below:

- I : Importer
- H: Hundiwala
- E: A BD Expatriate working abroad

- E does not send money to BD via a bank because the govt rate may be Tk 110 for a dollar. He asks a Hundi (H) agent. His rate may be Tk120 per dollar. So, E sells his dollars to H at a higher rate

- H collects the money in Riyal and sells it to I at, say, Tk125 to a dollar. H sends millions of dollars to the designated Bank accounts in the EU.

What total and utter BS!!!

You really have zero understanding of the financial system!

 

[mb444]

“Free flow of the dollar”

What a stupid idea!

Not even mighty China allows that!

Stop getting your knowledge from YouTube “experts”!!!

Controlling the rate of dollar allows the government to give preferential rate to exporters and legitimate importers.

Whilst the crooks have to use the so called kerb market where the rates are poor.

Expats using hundi ofcourse depresses the official position of BD.

But expats and their families are getting a good deal at the expense of the crooks at the kerb market.

@UKBengali another nugget from our buddy

My friend your grasp of sanity is suspect.

I did not say free flow, i said free float. Read a bit to understand what that actually means.

China is a closed communist economy, BD is not.

As to the rest of what you said no. BB does not give any preference to anyone. Taka will free float as per BB policy, they are just going slow and is seeking to manage the process. It is not necessary and is hindering BDs progress. Why are they doing it, it is because BD has failed to implement a proper tax regime.

 

[BananaRepublicUK]

My friend your grasp of sanity is suspect.

I did not say free flow, i said free float. Read a bit to understand what that actually means.

China is a closed communist economy, BD is not.

As to the rest of what you said no. BB does not give any preference to anyone. Taka will free float as per BB policy, they are just going slow and is seeking to manage the process. It is not necessary and is hindering BDs progress. Why are they doing it, it is because BD has failed to implement a proper tax regime.

Listen!

@UKBengali is the resident economic expert. And he ridicules you!

 

[EasyNow]

Remittances drop further 7.4% in October

According to data from the Bangladesh Bank, expatriate Bangladeshis sent $1.52 billion home in October, which decreased 7.4% from the same month last year and 1% from September

www.dhakatribune.com

Remittances drop further 7.4% in October​

According to data from the Bangladesh Bank, expatriate Bangladeshis sent $1.52 billion home in October, which decreased 7.4% from the same month last year and 1% from September

Tribune Desk
November 1, 2022 9:05 PM

In October, remittances declined further, increasing the pressure on the government to control its macroeconomy in the face of dwindling foreign exchange reserves.

According to data from the Bangladesh Bank, expatriate Bangladeshis sent $1.52 billion home in October, which decreased 7.4% from the same month last year and 1% from September. Since August, the inflow has been on a downward trend, posing a threat to the overall economic stability of the country, according to a central bank official.

The first four months of the current fiscal year have witnessed a 2.03% year-over-year decline in remittances, falling to $7.19 billion.

I hope you are as dedicated to giving monthly updates when the rate starts going up too.

 

[bluesky]

I hope you are as dedicated to giving monthly updates when the rate starts going up too.

No, I will tell people of this world that Japan has borrowed $5000 billion from your highly developed Bangladesh. Don't worry. I now believe what you say.

Is $5000 billion too low? Then, please tell us what the correct figure is.

 

[313ghazi]

Why?

Hard times abroad. I'll give you my personal example.

My mortgage repayments have gone up 20%.
My Energy bill has gone up 40% - although because of the mild winter, my consumption is still quite low, so i've not felt it.
My weekly grocery bill has gone up about 15%.

I'm making good money, I have the capacity in my income to absorb these increases without a lifestyle change. Many many people don't have that option.

 

[EasyNow]

No, I will tell people of this world that Japan has borrowed $5000 billion from your highly developed Bangladesh. Don't worry. I now believe what you say.

Is $5000 billion too low? Then, please tell us what the correct figure is.

You think you're being funny genius? Japan is a great country but no one is immune from global financial problems:

Japanese Yen Crashes, U.S. Faces Recession| Countercurrents

The Japanese yen hit its weakest exchange rate against the U.S. dollar since 1990 on Thursday, dropping to 150 yen to the greenback.

countercurrents.org

Japan Housing Market Crash | What You Need to Know About Japanese House Market

As the yen falls, have the chances of a Japan house price crash increased? Read on for more…

www.google.com

Japan economy set to slow sharply as global inflation, recession risks hurt

Japan's economy is expected to have slowed markedly in the third quarter as global recession risks hurt external demand while rising inflation and a weak yen's impact on imported prices forced consumers to keep their wallets shut.

www.reuters.com

 

[bluesky]

You think you're being funny genius? Japan is a great country but no one is immune from global financial problems:

Japanese Yen Crashes, U.S. Faces Recession| Countercurrents

The Japanese yen hit its weakest exchange rate against the U.S. dollar since 1990 on Thursday, dropping to 150 yen to the greenback.

countercurrents.org

Japan Housing Market Crash | What You Need to Know About Japanese House Market

As the yen falls, have the chances of a Japan house price crash increased? Read on for more…

www.google.com

Japan economy set to slow sharply as global inflation, recession risks hurt

Japan's economy is expected to have slowed markedly in the third quarter as global recession risks hurt external demand while rising inflation and a weak yen's impact on imported prices forced consumers to keep their wallets shut.

www.reuters.com

Do you need a real answer? Japan must insist BD to loan it another $5,000 billion.

 

[BananaRepublicUK]

Do you need a real answer? Japan must insist BD to loan it another $5,000 billion.

Mistri talk again!!!

 

[mb444]

Listen!

@UKBengali is the resident economic expert. And he ridicules you!

LOL, is that the best you can do hiding behind someone else?

Still would like to know which russel group uni you attended? Why so quiet on the topic, did you not boast you only consider russel group degree as the only barometer of good education?

If you have a counter point to anything I have said, do elaborate. I am sure @UKBengali can speak for himself should he choose to, but fail to understand what he has to do with you.

I say my piece, you may think I am seeking to be be the resident economics expert but nothing can be further from the truth. My opinion are simply that, my opinions but based on sound economic theories and ground realities. My interpretations could be wrong and I am open to opposing views as any mature person should be.

You on the other hand, let me be polite.... require more reading and introspection.

 

[mb444]

Hard times abroad. I'll give you my personal example.

My mortgage repayments have gone up 20%.
My Energy bill has gone up 40% - although because of the mild winter, my consumption is still quite low, so i've not felt it.
My weekly grocery bill has gone up about 15%.

I'm making good money, I have the capacity in my income to absorb these increases without a lifestyle change. Many many people don't have that option.

I would mirror your experience but fortunately my mortgages are on very long term fixed deal so am not impacted.

UK is going through the worse time in my adult life although i remember the 90s when i was a child and mortgage rate was double digits and unemployment numbers was over 3m.

Even then energy prices were not at the ridiculous level as it is now and people in absolute terms had much smaller mortgages. Even small rate increases are having oversized implication for average mortgages and it is clearly not sustainable.

 

[313ghazi]

I would mirror your experience but fortunately my mortgages are on very long term fixed deal so am not impacted.

UK is going through the worse time in my adult life although i remember the 90s when i was a child and mortgage rate was double digits and unemployment numbers was over 3m.

Even then energy prices were not at the ridiculous level as it is now and people in absolute terms had much smaller mortgages. Even small rate increases are having oversized implication for average mortgages and it is clearly not sustainable.

Unfortunately my 5 year fixed was up for renewal in the Spring so I renewed ASAP before the rates got any higher.

 

[VikingRaider]

If you watch Shomoy TV, Ekhon TV, 71 TV (all of them AL propaganda channels) they all are saying this exact same thing, problems will be sorted out after new years.

@Bilal9 Bhai , egular BAL propaganda channel na. Bangladesh er media komodin e GoB control Kore na!Eigula raw propaganda channel.

But zotodur bujhi bhatar bharot tar BAL bouke talaq diyeche tai ei channel gula BAL er against a legechhe.

Tobe India BAL er against a chole gecche mane kintu ei na ze amader BAL ke support deya lagbe.


Now Ami chai BNP foot soldier er ze bhumika niycche etar maddhome technocrat govt power nik and 5/10 year stay koruk.

Deshe election er poribesh firiye anuk ,er por fair election ele buija zabe ke favorite party.

But zai hok asha kori presidential form er maddhome democracy revive koruk!

Parliamentary system isn't for us for sure!

Listen!

@UKBengali is the resident economic expert. And he ridicules you!

@UKBengali once said that he is IT professional! And you are making him as resident economic expert, who even didn't visit Bangladesh long time.

So how he became resident economic expert? Because his analysis matches your criteria?

And why anyone in this world will agree with you if you declare someone ( self professed IT professional) economy expert?

@BananaRepublicUK why are you always so desperate?