Inward remittances post 40% growth in 11 months

Bangladeshi migrants sent over $2.17 billion remittances in May, up over 44 percent year-on-year, Bangladesh Bank data show.

May’s figure took the 11 months’ remittance to over $22.84 billion, which is nearly 40 percent higher than that of the corresponding period a year ago.

As a result, the country’s foreign exchange reserve increased to over $45 billion again.

Experts say there was an unusual rise in remittance during the Covid-19 period due to several factors.

A big chunk of money repatriated from the workers who returned to the country during Covid-19 pandemic and the government’s move to provide 2 percent incentive to remittance receivers to discourage illegal hundi were the key reasons for the rise in inward remittance, they say.

The government is now mulling to increase incentive to 3 percent to boost inflow of remittances, according to finance ministry officials.