Remittance inflow sliding despite incentive boost

The inflow of remittances in Bangladesh continued to fall for the past several months despite the government offering to pay more incentives.

Bangladesh Bank data shows Bangladesh expatriates sent $1.5 billion to their country in February, the lowest since May 2020.

From January 2022, the government increased the cash incentive on inward remittance to 2.5 percent from 2 percent in a bid to encourage Bangladeshi expatriates to send their money through formal channels.

But it was not reflected in the inflow of remittances so far this fiscal year.

The remittance inflow fell short of the target in the first eight months of the current fiscal 2021-22 against a target of $26 billion set by the government.

In the first eight months of FY22, remittance inflow stands at $13.44 billion, which is only 52% of the target.