Central bank takes a bunch of measures to boost remittance inflow

Remittance inflow is declining gradually. In such a situation, Bangladesh Bank (BB) is working to increase remittance. A number of measures has been taken including the facility of sending remittance without any charges. As a result of these initiatives, the central bank believes that the collection of remittance will increase in the future.

Steps taken to increase remittance include—2.5% cash incentives against legitimate wage earners remittance, CIP honoring of remittance senders, expansion and simplification of remittance disbursement process as well as facilitating investment and housing finance for non-resident Bangladeshis, encouraging international money transfers operators to set up drawing arrangements with Bangladeshi banks under fintech systems and waiving charges of banks or exchange houses for sending remittance etc.

In this regard, the spokesperson and executive director of the central bank GM Abul Kalam Azad said that the remittance inflow in October this year was slightly less than in the previous month of September. However, in the first 4 months of this year, remittance came in 2.03 percent higher than last year. Remittance is a flow. This flow may increase or decrease on a monthly basis. Seasonal effects also increase remittance inflow in special circumstances. Besides, the government and central bank have already taken several steps to increase expatriate income. Hopefully, remittance collection will gradually increase in the future.

Bangladesh Bank (BB) is not able to increase remittance despite various initiatives. Expatriate Bangladeshis semt foreign currency equivalent to 152 crore dollar in October this year, which was the lowest in the last 8 years. Earlier in February this year, remittance of 149 US dollar came in the country.

In the current fiscal year 2022-23, the first month of remittance in July was 209.63 crore US dollar, in August it was 203.69 crore dollar and in September 153.95 crore US dollar.