Remittance slightly up in Dec after six months

Remittance flow to the country was slightly up in December, about $7 million, after plummeting for the last six months since June of last fiscal year, according to central bank data.

But the amount received in December of 2021 is over 20% less compared to the same month of the previous year.

In December of FY2020-21, Bangladesh received $2.05 billion, which came down to $1.63 billion in December of FY2021-22.

The government has set a target to earn a $26 billion remittance in the current fiscal. But remittance inflow has been only $10.23 billion in the first six months of the FY2021-22, which is only 39.37% of the target. 

The Bangladesh Bank report, published on Sunday, said that remittance flow increased 18.60% in 2020 against 2019. But in 2021, the remittance flow increased by only 1.5%.

In 2021, a total of $22.07 billion remittances was received which was $21.74 billion in 2020. In 2019, the amount was $18.33 billion.

When his attention was drawn, BB executive director and spokesperson Sirajul Islam told TBS that remittance flow increases significantly during festivals. As there were no big festivals as such for the last six months, the remittance flow dropped. But it rose again slightly as expatriate workers have started joining duties again and sending money home, he added.  

The government has raised the incentive amount of remittance by 50% to achieve the target. 

"Although we have an adequate reserve, the demand for dollars in the domestic market is up due to the growth in import and export. We are selling dollars as per the demand to keep the market stable," he said, adding: we have sold $2.5 billion in the last six months, June-December.  

Expatriate workers sent all their income to the home country as the covid impact was severe at the onset of the last year, the amount of which was $22 billion. But the fall in remittance flow in 2021 has provoked a sharp rise in dollar price. Although BB has been selling dollars as per the market demand, the dollar price is not declining.