Mobile financial service providers can bring remittance directly: Bangladesh Bank
Bangladesh Bank has allowed mobile financial service (MSF) providers to bring inward remittance, in order to increase remittance inflow. The foreign exchange policy department of Bangladesh Bank issued a circular in this regard on Tuesday. According to the circular, authorized dealers can make drawing arrangements directly with exchange houses abroad without prior permission from Bangladesh Bank. Read more: Bangladesh Bank allows export income, remittance through MFS Authorized dealers are also allowed to go for drawing arrangements without letters of reference or certificates from the Bangladesh embassy or high commission of the respective country. In order to bring wider flexibility, MFS providers will be allowed to repatriate wage earners’ remittance in association with internationally recognized online payment gateway service providers, banks, digital wallets, card schemes, and aggregators abroad, said the Bangladesh Bank notification. In this context, MFS providers must have standing arrangements with foreign PSPs to receive foreign currency in their account, and equivalent taka value will be credited to the wage earners’ MFS accounts. Subsequently, foreign PSPs will provide credit to the designated dealer’s Nostro account (an account that a bank holds in a foreign currency in another bank). After receiving the amount in taka, wage earners’ can use the MFS account from abroad to do all transactions in Taka. Read more: BFIU suspends cash out from 230 MFS accounts over transactions through hundi Mobile financial services who want to provide repatriation services have to apply to Foreign Exchange Policy Department by December 31, 2022, with details of proposed arrangements in accordance with the framework outlined above or similar conducive procedures. Bangladesh Bank will primarily accord permissions, to review arrangements for piloting the initiative. Bangladesh rolled out MFS in 2011. Since then, the service has seen a boom in the country. At present, 13 MFS operators are providing services to more than 18 crore account holders who are transferring nearly Tk 3,000 crore daily.
Banks report $1.72 billion inward remittances till August 25
The remittance inflow moved slightly upward in the first 25 days of this August as Bangladeshi expatriates sent out more than $1.72 billion through the official banking channels, according to data submitted to the Bangladesh Bank by different banks. Bangladesh received $2.92 billion inward remittances in July, thanks to Eid-ul-Azha when Bangladeshis living abroad sent more money to families to celebrate one of the biggest festivals for Muslims. The expatriates sent $1.81 billion in remittances in August of the last fiscal year. Also read: Bangladesh receives $2.09 billion remittance in July; highest in 14 months Amid declining foreign exchange reserves due to rising import bills, many private sector banks are now bringing home more remittances than the public sector ones. Different private banks are buying dollars at a higher rate than state-owned ones, which is helping them attract more remittances. From 1 to 25 August, Islami Bank received $356.23 million, Agrani Bank $110.12 million, and City Bank 109.43 million in remittances. Pubali Bank received $5.48 million, Dutch-Bangla Bank $95.38 million, and Rupali Bank $93.53 million. Also read: Bangladesh receives $1.64 billion remittance in 21 days of July:BB Bangladesh saw its inward remittance drop by 15.12 percent to $21.03 billion year-on-year in FY22 after growing by more than 36 percent to $24.78 in FY21. It is mentionable though, that the drop is made steeper by the fact that the inward remittance figure for FY21 was an all-time record.
Remittance inflow rises ahead of Eid
Remittance inflow has increased ahead of Eid-ul-Fitr as Bangladesh received $ 1.82 billion remittance from April 01- 27. Bangladesh Bank (BB) is expecting that the figure will exceed USD $ 2 billion as expatriates are sending additional money for their relatives ahead of Eid-ul Fitr. Md. Serajul Islam, executive director and also spokesperson of BB told UNB on Saturday that a total of $ 1.82 billion remittance were received by different banks from April 01- 27. He hoped that more than $30 billion remittance will be received in the remaining days of April. Read: Customs houses to remain open during Eid holidays Bangladesh received $1.87 billion in July, $1.81 billion in August, $1.72 billion in September, $1.64 billion in October and $1.55 billion in November, $1.63 billion in December, $1.70 billion in January, $1.14 billion in February of FY 22. The expatriates sent $ 2.17 billion remittance in the month of May last year, ahead of Eid-ul Fitr. In March 2022, the expatriates sent a $1.86 billion remittance. The inward remittance inflow of the last nine months of FY22 saw a decreasing trend compared to the corresponding months in the FY21. In the same period of FY21, the remittance inflow was $2.59 billion in July, $ 1.96 billion in August, $ 2.15 billion in September, $ 2.10 billion in October, $2.07 billion in November, $2.05 billion in December, $ 1.96 billion in January, $1.78 billion in February and $1.91 billion in March.
Remittance inflow down by $ 3.25 billion in 8 months of FY 22
Bangladesh’s remittance inflow decreased by USD $ 284.5 million to $ 1496.09 million in February of the current fiscal year compared with the same month of last fiscal year. In February of FY2020-21, the expatriates sent remittance of $ 1780.59 million to the country. Bangladesh received $ 13.44 billion remittance in the first 8 months of the current FY2021-22 which is counted from 1st of July every year. In the same period of last FY2020-21, the expatriates sent $16.68 billion. It means flow of inward remittance has decreased by $3.25 billion. Read: Remittance Magic: Bangladesh received $11.95bn in 7 months Bangladesh Bank (BB) data released on Tuesday found that the expatriates in different countries of the world sent $1496.09 million inward remittance through banking channels. The previous month, in January, expatriates sent inward remittances of $ 1704.53 million, in December $1630.66 million. The government has been providing a 2 per cent incentive from the FY2019-20 to increase remittance inflow in the formal channel (banking) discouraging hundi. Read:Central bank devalues taka to boost exports, remittances After easing global Covid restriction on movement, the inward remittance flow decreased gradually compared with the severe pandemic period. In the last FY2021-22 Bangladesh received a record $ 24.77 billion remittance, which is the highest ever. In January 2022, the government increased remittance incentive to 2.5 per cent to increase the inward remittance flow in the banking channel. It means the expatriates are now getting hassle-free Tk 102.5 for sending Tk 100 remittance through banking channels. Read Govt raises incentive on remittance to 2.5% The sector insiders said that Bangladesh's remittance inflow would increase in the remaining period of the current fiscal year as the government increased incentive rate and upward trend of fuel oil prices in the global market.
Remittance inflow to become normal in 2-3 months: Finance Minister
Finance Minister AHM Mustafa Kamal has said he is expecting the country’s remittance inflow to become normal within two to three months. “Hope, we’ll see an uptrend within two-three months as many of the expatriates who got stuck at home are going back to work following the improvement in the Covid-19 situation,” he told reporters on Wednesday after a meeting of the cabinet committee on public purchase. Read: Remittances hit record high in April ahead of Eid The finance minister’s remarks came against the backdrop of the consecutive fall in inward remittances of the country. As per the Bangladesh Bank’s statistics, the country received $1871.49 million in July, $1810.10 million in August and $1726.29 in million in September this year. After the fall in remittance earnings, many analysts apprehend if the downward trend continues, the country’s foreign exchange reserve may witness a decline. Read: Remittance, investment promotion campaign held in US Mustafa Kamal said Bangladesh has been witnessing continuous rise in remittance inflow as a result of the various measures, including 2 percent incentives given by the government to wage earners. He said the slight fall in remittance inflow is temporary and it will return to normalcy within two months as Bangladesh has long been receiving remittances of $22-23 billion annually.
Bangladesh a lucrative investment destination in between India, China: FM
Foreign Minister Dr AK Abdul Momen on Tuesday said Bangladesh, with its 165 million hard-working people in between two large economies like China and India, is a lucrative destination for investment.
Robust remittance inflow continues despite pandemic: Finance Minister
Seeking continued support from the World Bank to push the country’s economy forward, Finance Minister AHM Mustafa Kamal has said Bangladesh has seen a marked growth in remittance inflow despite predictions of decline due to the Covid-I9 pandemic.
Bangladesh continues to see robust remittance inflow; $922.10 mn in 10 days
According to Bangladesh Bank data, the country received $534 million during the same period last year while $572 million in the first 10 days of August last. Officials at the central bank said the country has been witnessing an increased trend in remittance inflow since the government’s declaration of 2 percent incentives for remittance senders in July 2019 in
Forex reserve crosses $35 billion mark for the first time
The foreign exchange reserve of the country has crossed $35 billion mark for the first time.
Proper action plan needed for post-coronavirus economic regime: Experts
Experts have urged the government to form an advisory committee to come up with a proper action plan for strengthening the post-coronavirus economic regime in the country.