Remittance surged by 32% year-on-year in November

The remittance inflow increased by 32 percent year-on-year in November following the government's 2 percent cash incentive.

Bangladesh received $1.55 billion in November, which is 5 percent down from the previous month, according to the Bangladesh Bank data.

The flow of remittance has been increasing after the government announced cash incentive for remitters, Finance Minister AHM Mustafa Kamal said on Sunday.

The remittance inflow will reach $20 billion this fiscal year, covering up the fall of export, he told reporters after a meeting with bankers.

In the last fiscal year, the country received $16.42 billion, according to the central bank data.

In the first five months of the current fiscal year, total remittance receipt was $7.71 billion – which was 22.66 percent higher than the same period of the last year.

In the current budget, the government introduced a 2 percent cash subsidy for remitters to encourage them to send money home through the legal channel.

Remitters sending money up to $1,500 will receive the incentive directly to their accounts without any verification.

In case of remittance of more than $1,500, documents for their sources of income and other papers will have to be presented to avoid the misuse of fund.

The exchange rate of taka against the US dollar is also favourable for remitters, which has encouraged them to send their hard-earned money through the banking channel.

The interbank exchange rate increased by Tk1 in the last one year to Tk84.50 on December 1.