Remittance hits record high in July | The Business Standard
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • TBS Graduates
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Long Read
    • Interviews
    • Offbeat
    • Tech
    • Magazine
  • বাংলা
The Business Standard

Wednesday
September 27, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
    • GOVT. Ad
  • More
    • Subscribe
    • Videos
    • TBS Graduates
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Long Read
    • Interviews
    • Offbeat
    • Tech
    • Magazine
  • বাংলা
WEDNESDAY, SEPTEMBER 27, 2023
Remittance hits record high in July

Economy

Shafayat Hossain
27 July, 2020, 10:40 pm
Last modified: 28 July, 2020, 11:32 am

Related News

  • Finance minister seeks expert advice to boost remittance thru' legal channels
  • Country's economy is fine except for remittance: Finance minister
  • Record Bangladeshis hired in Italy this year, $800m sent home
  • NRBs call for better investment, remittance ecosystem
  • Oil rises to highest in 2023 on tight supply expectations

Remittance hits record high in July

An expert said many expats are sending money as part of their preparation to return home due to joblessness abroad

Shafayat Hossain
27 July, 2020, 10:40 pm
Last modified: 28 July, 2020, 11:32 am

The monthly inflow of remittance hit an all-time high in July ahead of Eid-ul-Adha, with the figure reaching almost $2 billion in the first three weeks.

According to data from the Bangladesh Bank, the country received $1.96 billion in remittance from expatriates from July 1 to 23.

In June, the last month of fiscal year 2019-20, $1.83 billion came in.

In the recent months, migrants from Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Malaysia and the US, among other countries, have been sending a higher amount of money.

Officials of the central bank said the inflow of remittance in July would reach around $2.5 billion if the trend continues in the last week.

They said the inflow of remittance usually increases ahead of Eid-ul-Fitr and Eid-ul-Adha, two major religious festivals of the Muslims.

Besides, joblessness and drop in income of the migrants' near and dear ones in Bangladesh due to the coronavirus-induced economic shock prompted many to remit higher amounts in the past few months as a form of support, officials said.

The record remittance figure in July came as a continuation of that in the immediate past fiscal year 2019-20 when the country received $18.20 billion amid the coronavirus pandemic. It was a record until then as the country had never received this much in a fiscal year before. 

Even though the inflow of remittance spiked since May this year, migration from the country since the outbreak of coronavirus in January has been witnessing a significant fall as many countries have still kept their borders closed for foreign nationals.

Asked why the inflow of remittance increased despite the pandemic, Policy Research Institute Executive Director Ahsan H Mansur told The Business Standard many Bangladeshi expatriates are sending money as part of their preparation to return home due to joblessness abroad.

Economies of almost all countries, including the destinations of Bangladeshi migrants, have been facing stagnations, resulting in job cuts, he said.

"This is a major reason behind the increased inflow of remittance even though migration from Bangladesh remained almost halted in the last several months due to coronavirus," explained Mansur, also the chairman of Brac Bank.

Besides, the inflow of remittance usually increases before Eid, he said.

Apart from these, fall in income and joblessness of family members and relatives in Bangladesh could be behind the surge in remittance inflow, he added.

Shameem Ahmed Chowdhury Noman, secretary general of Bangladesh Association of International Recruiting Agencies, said many expatriates had become jobless and did not get paid in the last few months, but now the situation is getting normal.

"So, it may have happened that thousands of workers got their salaries and sent the money this month. This is how remittance hit a record high."

He said remittance inflow increases before Eid-ul-Adha as many send money home for Qurbani.

"If we can analyse country-wise remittance data, we will be able to say for sure whether the record high remittance was from migrant workers or diasporas." 

Noman said most of the Bangladeshi migrants have not yet been affected by Covid-19.

"We have to wait to see the upcoming trends of remittance before making a final comment." 

Dr Syeda Rozana Rashid, migration expert and professor of international relations at the University of Dhaka, said, "It is not the fact that the current flow of returnees has impacted the inflow of remittance. There are more than one crore migrants while only several lakh have returned."

"The record remittance in July reflects how migrants sent money during the crisis. As the Covid-19 situation is improving gradually, workers are going back to work and are sending money ahead of Eid.

"Besides, many workers fear that they have to return in the coming days because of layoffs and joblessness. This is why they are sending all their savings or money they got from other sources," she added.

According to Brac Migration Programme, around 2.5 lakh migrants have returned from different countries amid the pandemic.

As a result of remittance inflow and slowdown in imports, the country's foreign exchange reserve increased to $34 billion in June, reaching $36 billion on July 2.

With the record inflow of remittance in July, the foreign exchange reserve was reaching close to $37 billion now.

On the eve of Eid-ul-Fitr in May last year, the inflow of remittance was a record $1.75 billion.

In FY20, the government introduced a 2 percent cash incentive for remittance in order to encourage expats to send money through legal channels.

Bangladesh / Top News

remittance / Record / High

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Power price, subsidy to rise as govt has to pay producers at latest dollar rate
    Power price, subsidy to rise as govt has to pay producers at latest dollar rate
  • Photo: BSS
    BB formulates digital payment policies with quick refund, penalty provisions
  • Obaidul Quader speaking at a peace and development rally arranged by the Dhaka District Awami League in Keraniganj this afternoon (26 September), protesting terrorism, militancy, anarchy, ill-politics and anti-state conspiracy of the BNP and Jamaat. Photo: Collected
    Sheikh Hasina cannot be stopped through visa policy, sanctions: Quader at rally

MOST VIEWED

  • US dollar banknotes are seen in this illustration taken on 10 March 2023. Photo: Reuters
    Taka weakens even further
  • The Fitch Ratings logo is seen at their offices at Canary Wharf financial district in London,Britain, March 3, 2016. REUTERS/Reinhard Krause
    Fitch now rates Bangladesh's foreign debt outlook negative
  • Experts say Dhaka has at least 18 times more than the population it can actually support. Photo: Rajib Dhar
    DAP relaxes floor area ratio, planners raise concerns over Dhaka's livability
  • Dollar rates raised to Tk110 for remitters, exporters
    Dollar rates raised to Tk110 for remitters, exporters
  • Why Biman struggles to overcome pilot shortage
    Why Biman struggles to overcome pilot shortage
  • Record Bangladeshis hired in Italy this year, $800m sent home
    Record Bangladeshis hired in Italy this year, $800m sent home

Related News

  • Finance minister seeks expert advice to boost remittance thru' legal channels
  • Country's economy is fine except for remittance: Finance minister
  • Record Bangladeshis hired in Italy this year, $800m sent home
  • NRBs call for better investment, remittance ecosystem
  • Oil rises to highest in 2023 on tight supply expectations

Features

India-Canada clash should be a wakeup call

India-Canada clash should be a wakeup call

21h | Panorama
It is highly unlikely that inflation rate is going to come down soon. PHOTO: TBS

No more central bank loans to the govt: Will it be enough to curb inflation?

22h | Panorama
Why Bangladeshi patients flock to India

Why Bangladeshi patients flock to India

22h | Panorama
Nooruddin Complex: Of childhood, dreams and a sense of community

Nooruddin Complex: Of childhood, dreams and a sense of community

22h | Habitat

More Videos from TBS

How dependent is Canada's economy on India?

How dependent is Canada's economy on India?

11h | TBS World
IMEC; Is the main objective to stop China?

IMEC; Is the main objective to stop China?

10h | TBS World
Why Biman struggles to overcome pilot shortage

Why Biman struggles to overcome pilot shortage

14h | TBS Insight
Global Finance's report card: Bangladesh Bank governor got ‘D’

Global Finance's report card: Bangladesh Bank governor got ‘D’

13h | TBS Stories
EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]