Bangladesh received remittances totalling $655 million in the first nine days of November, according to the latest report of the Bangladesh Bank. This amounts to an average daily inflow of around Tk 72.8 million in foreign remittances. The central bank’s report revealed that the remittance inflow for the same period in October was $739.8 million, indicating a decrease in this November’s remittance figures. In terms of distribution among banks, state-owned banks accounted for $199.75 million of the remittances. Private banks managed the highest share, facilitating $421.94 million in remittances, while specialised banks contributed $31.56 million, and foreign banks handled $1.75 million. Its further breakdown shows that between 3rd and 9th November, a total of $612.58 million was remitted to Bangladesh, while from 1st to 3rd November, expatriates sent $42.41 million. Bangladesh received $2.5386 billion in remittances in June. The inflow, however, dropped significantly in July, the first month of the current fiscal year, with remittances totalling nearly $1.91 billion – the lowest in the past 10 months. Significant rise in remittance inflow as Oct records over $2.39 bn The trend began to stabilise with the formation of an interim government, and remittances rebounded in August, reaching $2.2213 billion. In September, remittance inflows reached a fiscal year high of $2.4048 billion, followed by a slight decline in October, which saw $2.3951 billion in total remittances.  

Bangladesh witnessed its highest Letter of Credit (LC) openings in 23 months, amounting to US $6.83 billion in May 2024, amid an ongoing foreign exchange crisis, according to Bangladesh Bank. Previously, the highest LC opening was recorded in June 2022, reaching $7.02 billion. Since then, fluctuating dollar exchange rates and the domestic currency, the taka, have generally led to a decreasing trend in LC openings. In April 2024, LCs worth $5.68 billion were opened. The figures for May show a significant increase of more than 20 percent compared to April. Compared to the same period in 2023, LC openings in May rose by 19.5 percent. What to Consider Before Taking a Personal Loan from a Bangladeshi Bank Economists and market analysts attribute this trend to several factors, including tax benefits at the end of FY 2023-24 and the anticipation of the withdrawal of tax exemptions on various products in the FY 2024-25 budget. Dr. Ahsan H Mansur, Executive Director of the Policy Research Institute (PRI), explained to UNB that the increase in LC openings in May was influenced by a more lenient import policy on some items towards the fiscal year's end. Additionally, traders rushed to open LCs fearing further increases in dollar exchange rates after the central bank raised the rate by Tk 7 in a single move on May 8, 2024, he added. Trade analyst Dr. M. Mashrur Reaz noted that the increase in LC openings after a long period was also due to an improved dollar supply, thanks to remittances and foreign loan disbursements. Bangladesh needs green growth to achieve its vision of upper middle-income country by 2031: WB Despite ongoing macroeconomic instability in Bangladesh, trade volume and business transactions have increased in recent months. Government policy support on capital imports also impacted LC openings, Dr. Reaz observed. Furthermore, the announcement of new taxes on capital machinery imports in the FY 2024-25 contributed to the spike in LC openings. Capital machinery imports were tax-free until now, Dr. Reaz pointed out.

International migration remains a driver of human development and economic growth, highlighted by a more than 650 percent increase in international remittances from 2000 to 2022, rising from USD 128 billion to USD 831 billion, according to a new global report released today. The growth continued despite predictions from many analysts that remittances would decrease substantially because of COVID-19. The International Organization for Migration (IOM) launched the World Migration Report 2024, which reveals significant shifts in global migration patterns, including a record number of displaced people and a major increase in international remittances. IOM Director General Amy Pope formally released the report in Bangladesh, which stands at the "forefront of migration" challenges, including emigration, immigration and displacement. "We hope the report inspires collaborative efforts to harness the potential of migration as a driver for human development and global prosperity," DG Pope said. By choosing Dhaka as the report's launch site, IOM not only highlights the country's efforts in supporting vulnerable migrants and fostering pathways for regular migration but also recognizes Bangladesh's important role in shaping global migration discourse and policy, IOM said. As a Global Compact for Safe, Orderly, and Regular Migration Champion country, Bangladesh has demonstrated a strong commitment to addressing migration issues and implementing policies that safeguard migrants' rights, it said. Read more: Global actors pledge to collaborate on transformation of Bangladesh agriculture This proactive engagement aligns with IOM's strategic objectives, making Bangladesh an ideal location to launch the 2024 World Migration Report. Foreign Minister Dr Hasan Mahmud said as one of the GCM champion countries, Bangladesh will not only continue to act upon the pledges it has made for its domestic context but would also take up emerging issues and challenges pertaining to migration and development for informed deliberations at the international level. “The World Migration Report 2024 helps demystify the complexity of human mobility through evidence-based data and analysis,” Pope said at the launch. “In a world grappling with uncertainty, understanding migration dynamics is essential for informed decision-making and effective policy responses, and the World Migration Report advances this understanding by shedding light on longstanding trends and emerging challenges.” Of that 831 billion in remittances, 647 billion were sent by migrants to low and middle-income countries. These remittances can constitute a significant portion of those countries' GDPs, and globally, these remittances now surpass foreign direct investment in those countries. Highlighting key findings, the report reveals that while international migration continues to drive human development, challenges persist. Read more: UK Minister for Indo-Pacific arrives Tuesday on two-day visit With an estimated 281 million international migrants worldwide, the number of displaced individuals due to conflict, violence, disaster, and other reasons has surged to the highest levels in modern-day records, reaching 117 million, underscoring the urgency of addressing displacement crises. Migration, an intrinsic part of human history, is often overshadowed by sensationalized narratives. However, the reality is far more nuanced than what captures headlines. Most migration is regular, safe, and regionally focused, directly linked to opportunities and livelihoods. Yet, misinformation and politicization have clouded public discourse, necessitating a clear and accurate portrayal of migration dynamics. IOM’s World Migration Report, with its innovative digital tools and comprehensive analysis, aims to help dispel myths, provide critical insights, and inspire meaningful action in addressing the challenges and opportunities of human mobility. This launch is part of IOM Director General’s first three-day visit to Bangladesh. Chief of IOM Mission in Bangladesh Abdusattor Esoev, former Foreign Secretary Shahidul Haque, senior government officials and diplomats stationed in Dhaka were present at the report launching ceremony. Read more: UK Minister for Indo-Pacific in Dhaka to ‘strengthen’ economic, security, migration partnership with Bangladesh

Bangladesh Armed Forces have earned a total Tk 27,941 crore by participating in different UN peacekeeping missions abroad in the 23 fiscal years since 2000-01. Law Minister Anisul Huq, who is in charge of defense ministry in parliament, gave the figures in the House while replying to a tabled question of ruling Awami League MP Habibur Rahman from Bogura-5. New censorship law passed in parliament Habibur Rahman wanted to know about the amount of foreign currencies the Armed Forces of Bangladesh have earned so far through participating in the peacekeeping missions and how much foreign remittances the government has received. New customs law passed in parliament In the scripted answer, Anisul informed the House that the average income through participating in the peacekeeping mission has been Tk 1214 crore. PM states Bangladesh’s anti-war position during meeting with Vice-President of European Parliament

The inward remittance flow in January came as good news while Bangladesh Bank (BB) is struggling with LCs liabilities to import essential commodities and industrial raw materials amid volatile foreign exchange supply. In January, Bangladesh received $1.96 billion in the legal channel, the BB updated data revealed on Wednesday. In December, the remittance was $1.69 billion. Bangladesh received $12.45 billion inward remittances in seven months (July-January) in the current fiscal year 2022-23. Read More: Banks to stop charging any fees for handling remittances. Bank officials said many import payments are being deferred due to the dollar crisis. For this, expatriate income of dollars are being bought at a higher price than the fixed price. As a result, expatriate income increased. If the price limit of the dollar is removed, the crisis will go away, they said. The BB spokesperson Mesbaul Haque told UNB that in order to increase remittance inflow, the central bank has increased the exchange rate of US dollars for remittance. Read more: Bangladesh Bank simplifies receiving remittance In addition to a 2.5 percent hassle-free incentive for remittance, several banks also provide additional incentives to attract foreign exchange, he said. Banks will not cut any charge or fee for sending remittances in the legal channel, he said. Research by Bangladesh Bank found that more than 40 percent of remittance of expatriate income is sent to the country through hundi. Read More: Bangladesh 9th in remittances with US$ 15.9b: World Bank.

Although Bangladesh may not go into recession, the country is significantly prone to many of the recessionary risks if appropriate steps are not taken to diversify the export product and basket and increase remittances through formal channels, said the International Chamber of Commerce-Bangladesh (ICCB) on Thursday. The ICCB in its latest editorial also highlighted the importance of taking appropriate measures to streamline public sector expenditures, rationalize mega infrastructure and other projects and undertake effective financial sector reforms. The global economy surpassed $100 trillion for the first time in 2022, but is likely to stall in 2023 due to last year’s multifaceted shocks and challenges. The three main global growth engines -- the US, Europe and China-- will experience slower growth in 2023, according to the editorial. In Bangladesh, according to experts, a major effort should be directed toward strengthening macro-prudential regulations and building foreign exchange reserves. Fiscal measures should carefully regulate withdrawal of fiscal support measures while ensuring consistency with monetary policy objectives. Read more: Accelerate gas exploration to overcome energy crisis: ICCB A credible medium-term fiscal plan should be in place, among others, to provide targeted relief to vulnerable households. The supply side measures should aim to ease labor-market constraints, increase labor-force participation, reallocation of displaced workers and reduce price pressures. Effective policy coordination will be important in increasing food and energy supply. For the energy sector, policies should accelerate the transition to low–carbon energy sources and introduce measures to reduce energy consumption to face climate change. Higher-than-expected and persistent inflation, tightened financial conditions, Russia's war against Ukraine, lingering COVID-19 pandemic and supply-demand mismatches have further slowed the global economic outlook, according to the editorial of the ICCB. IMF Chief Kristalina Georgieva warns that one-third of the world economy could be in recession in 2023. Even countries that would not be in recession, would feel the recessionary pressure for millions of people, she adds. Russia’s invasion of Ukraine not only threatens the lives of millions of Ukrainians but has also accelerated a series of cascading and interconnected global crises in food, fuel, and energy, resulting in rising cost of living further adding inflationary pressure in many countries. In addition, extreme weather conditions due to climate change pose downside risks to the global economic outlook, and increasing energy prices also hamper the path toward a green transition, said ICCB. The persisting global challenges have caused rising debt vulnerabilities and hampered the way toward recovery, which further impacted the vulnerable groups, especially low-income and developing countries. The largest slowdown of global trade in generations, significant decline in FDI, private capital flows and remittances are also contributing to global recession. The likely recession in the developed world will spur capital outflows from the developing countries forcing them to devalue their currencies, thus adding to rising inflation and consequently to increasing interest rates. According to a recent comprehensive World Bank study, the risk of global recession in 2023 has risen sharply as the central banks across the countries have hiked interest rates in response to inflation. Read more: ICCB: Russia-Ukraine war must end for the sake of humanity, development Yet the indications so far show these policy actions may not be sufficient to bring global inflation back to normal. Indications are there that global consumer confidence has suffered a sharp decline. It is apprehended that unless supply disruptions and labor market pressures subside, the global core inflation rate may remain high. At the global level, the key will be to strengthen global trade networks to alleviate supply bottlenecks. Now is the time to promote a rules-based international economic order that prevents the threat of protectionism and fragmentation that would further disrupt trade networks, said the ICCB. In line with current global economic challenges, G20 members have reaffirmed their commitment to well-calibrated, well-planned, and well-communicated policies to support sustainable recovery and mitigate scarring effects to support strong, sustainable, balanced, and inclusive growth. In this regard, the G20 has reaffirmed the importance of macro-policy cooperation to preserve financial stability and long-term fiscal sustainability and safeguard against downside risks and negative spillovers. Amazon founder Jeff Bezos, speaking to CNN recently warned consumers and businesses that they should consider postponing large purchases during the holiday season to keep their cash safe as an economic recession might be in the offing. While the central banks should continue with their efforts to control inflation to help anchor inflation expectations and reduce the degree of monetary tightening, concerted actions are needed by other policymakers as well.

Bangladesh received USD $1.70 billion inward remittance in December 2022 through the banking channel, up by 4.23 percent compared to the same month of the previous year. In November, the expatriates sent home $1.59 billion through the legal channel, according to Bangladesh Bank an updated report released on Sunday. The central bank has been trying to increase inward remittance flow through banking channels by offering incentives and higher exchange rates of the US dollar. Read: BB moves to encourage greater flow of remittance to boost forex A review of the remittance flow showed that the total remittance received in the first 6 months of the fiscal year 2022-23 (July- December) was $ 10.49 billion. In the same period of the previous financial year, the expatriates sent $10.24 billion in remittances. Accordingly, in the first 6 months of this fiscal year, Bangladesh received $287 million more in remittances. The BB spokesperson Mesbaul Haque told UNB that in order to increase remittance inflow, the central bank has increased the exchange rate of US dollar. Read: Bangladesh received $357.76mn remittance in first week of Oct In addition to a 2.5 percent hassle-free incentive for remittance, several banks also provide additional incentives to attract foreign exchange, he said. Banks will not cut any charge or fee for sending remittances in the legal channel, he said. Research by Bangladesh Bank found that more than 40 percent of remittance of expatriate income is sent in the country through hundi or unofficial channel. Read More: Banks to stop charging any fees for handling remittances

Foreign Minister Dr AK Abdul Momen on Tuesday said the government wants to honor expatriate Bangladeshis in every possible way and ease their sufferings at home and abroad.    He said the expatriates have always been supportive to Bangladesh’s economic development and even played a very significant role during the War of Liberation in 1971. “They have kept our economy vibrant by sending remittances. We want to engage them more in our economic development,” he told reporters after attending a programme in the city. Momen said the government has taken a decision to observe December 30 as the National Expatriates Day. The Cabinet on Monday approved the proposal. Read more: Bangladesh requests Bahrain to recruit more skilled workers, IT professionals Asked whether the government has decided to impose new restrictions along the border and airports to contain Covid-19, Momen said they are yet to discuss the matter. Responding to a question on rape cases, the foreign minister said they want not a single rape case in the country but it cannot be done without social movement. Earlier, the foreign minister spoke as the chief guest at a national level sharing meeting on civil-society led alternative CEDAW (Convention on the Elimination of All Forms of Discrimination against Women) reporting hosted by Bangladesh Mahila Parishad and UN Women.  Read more: Foreign Minister asked to place a report on stranded expats

The monthly inflow of remittances hit an all-time high in April ahead of Eid-ul-Fitr, reaching $2.067 billion. Expatriate Bangladeshis sent $1.91 billion in remittances in March; which rose 8.19% in April, according to the Bangladesh Bank. Read bKash offers 1 pc cash bonus on receiving remittance Expatriates sent $2.06 billion in remittance in April, up 89.17% year-on-year from the same period of last year. Remittance inflow usually increases ahead of Eid-ul-Fitr and Eid-ul-Adha, as the expatriates send a big chunk of foreign currencies to the country ahead of two major religious festivals of the Muslims, experts said. Read BB further simplifies outward remittance rules for industrialists Although the pandemic has slowed down the global economy, remittance inflow grew 39% to $20.67 billion in the first 10 months of the current fiscal year, compared to the same period of the last fiscal. The remittance earnings have begun an upward march amid the Covid-19 pandemic as the government and the central bank took several initiatives to boost it; the migrant workers have already become used to the legal channels and are enjoying the 2% cash incentive, experts said. Read Remittances: First 6 months of fiscal sees over 37 percent growth

United Nations Secretary-General Antonio Guterres on Sunday appealed for "people everywhere" to support migrants as the World Bank projected that remittances will fall by about 20 percent.