Bangladesh received USD $ 1704.45 million ($1000 million is equal to 1 billion) in remittances in January 2022, which is $73.79 million more than December, 2021.
The Bangladesh Bank (BB) released the latest remittance update of inward remittances sent by the non-residents Bangladeshis (NRBs) through different banks. The remittance inflow got momentum through the legal channel in January as the government raised the incentive from 0.50 percent to 2.5 percent, insiders said.
Some banks also provided an additional 1 percent to attract remittance through the particular banks.
Bangladesh received $24.77 billion in the last 2020-21 fiscal year through the banking channel as the transaction through it came down due to international flight operation halted for Covid-19 pandemic.
READ: Central bank devalues taka to boost exports, remittances
The remittance inflow through the legal channel saw a decline in the current fiscal year as it got diverted to illegal channels, including hundi, after the global flight operation eased.
However, the overall remittance inflow is lower in the current financial year as compared to the previous year.
According to the central bank, Bangladesh received $11.95 billion remittance in the first seven months of the current fiscal year.
The expatriates sent $1871.49 million in remittances in July, $ 1810.10 million in August, $ 1726.71 million in September, $ 1646.87 million in October, $1553.70 million in November, $1630.66 million in December and $1704.45 million January of the current (FY 2021-22) year.
How remittance benefits Bangladesh
The inward remittance to Bangladesh has lifted many people from poverty and served as a cushion for families during difficult times, as the country saw during the pandemic.
According to economists, remittance has been the backbone of the National economy as it provides inputs in financing Bangladesh's trade deficit.
READ: Govt raises incentive on remittance to 2.5%
According to a recent study by the World Bank, remittance has helped to reduce the poverty level in Bangladesh by 1.5 percent.