Inward remittances from UAE jump

The country has received the highest amount of remittances from the United Arab Emirates (UAE) in the first eight months of the current fiscal year of 2023-24.

The second highest amount of remittances comes from the United Kingdom, the next comes Saudi Arabia, the US and Italy.

The UAE was the third and the UK the fourth in sending remittances in the last two years. Saudi Arabia was the first and the US was the second remitter during the period.

Bankers said inflow remittances through the formal channels from Saudi Arabia have decreased.

On the contrary, inflow remittances from Saudi Arabia and the UK have increased.

Analysts said Dubai has become a coveted destination for a section of rich people, entrepreneurs and politicians. The number of Bangladeshi people is increasing in Dubai.

Some analysts believe a section of people is bringing back laundered money to get incentives. After receiving the incentives, that money is probably being laundered through informal channels again. As a result, the inward remittances from the UAE through the formal channels all of a sudden.

However, bankers said banks are now providing various facilities for inward remittances. As a result, the inward remittances through the formal channels have increased.

Private Mutual Trust Bank's managing director Syed Mahbubur Rahman, speaking to Prothom Alo, said expats are getting facilities if they send remittances through the formal channels. Various campaigns are being launched in the UAE. As a result, inward remittances have increased from the country.

According to Bangladesh Bank, the country received USD 15.08 billion between July and February in the current fiscal year. A total of USD 2.91 billion have been remitted from the UAE, USD 1.88 billion from the UK, USD 1.79 billion from Saudi Arabia, USD 1.68 billion from the USA and USD 1 billion from Italy. 61 per cent of total remittances have come from these five countries in eight months.

USD 2.07 billion in the form of remittances came from the UAE in the fiscal year of 2021-22. Whereas the country received USD 2.91 billion in eight months of the current fiscal year.

Inward remittances from the UK have increased. The country received USD 2.04 billion and USD 2.08 billion in the last two consecutive years. The country received USD 1.88 billion in the first eight month of the current fiscal year.

Inward remittances from Saudi Arabia have been decreasing for over one and half years. The country received USD 3.76 billion from Saudi Arabia in the fiscal 2022-23. But the country received USD 1.79 billion in eight months of the current fiscal year.

The country received USD 3.52 billion in remittances in the fiscal 2022-23. The country received USD 1.68 billion in remittances in the first eight months of the current fiscal year.

Refugee and Migratory Movements Research Unit (RMMRU) founding chair Tasneem Siddiqui said many wage earners are sending their money through informal channels (hundi) due to lack of trust on the banks and gap of exchange rate.

She also said many Bangladeshi migrants, who have gone to Saudi Arabia through legal channels, are not getting jobs and returning home. So inward remittances from Saudi Arabia have decreased.

Preferring not to be named, a top banker said, "Many Bangladeshis laundered money to UAE. A portion of the money is being sent back to Bangladesh to get incentives."

*This report, originally published in Prothom Alo print and online editions, has been rewritten in English by Rabiul Islam