Remittance increases, export earnings drop
Remittance sent through legal channels by migrant workers has jumped up in the month of Ramadan. Expatriates sent nearly USD 2.01 billion (201 crore and 76 lac) in March through various banks. This remittance is 29.29 per cent higher than February and 8.49 higher than the same period of the previous year.
Earlier, the remittance exceeded USD 2 billion in July and August. According to the updated data released by Bangladesh Bank, USD 16.03 billion remittance has been received in first nine months of the 2022-23 fiscal.
Meanwhile, export earnings has slightly dropped after four months in March. Exports worth USD 4.64 billion were made in this month, which is nearly 2.5 per cent less than the same period last year. However, the overall growth of export earnings in the first 9 months (July-March) of 2022-23 fiscal is 8 per cent higher than the same period of the previous year.
The Export Promotion Bureau (EPB) released the updated export earnings figures on Sunday. It shows that in the first 9 months of the current financial year, there has been a positive growth in exports of ready-made garments, leather and leather products, non-leather footwear and plastic products among the major export products.
On the other hand, exports of jute and jute products, home textiles, frozen food, processed agricultural products, engineering products have declined. A total of USD 41.72 billion worth of products have been exported during the discussion period. During the same period of the previous year, exporters earned USD 38.61billion.
Remittance
Bank officials say that expatriates are sending more money than before due to Ramadan and Eid. They are also receving Zakat funds. Apart from this, due to the dollar crisis, many banks are bringing in remittance at a higher price. This has affected the figure of expatriate income. Banks can now pay Tk 107 per dollar for remittance.
Remittance of USD 1.56 million was received to the country last February. It was USD 397.6 million or about 20 per cent less than in January. The inflow in January was about USD 1.96 billion. Compared to February 2021, remittance increased by USD 66.8 million last February. In February 2022, it was USD 1.49 billion.
Syed Mahbubur Rahman, managing director of Mutual Trust Bank, told Prothom Alo that remittance increases every Ramadan and this year is no exception either. Remittance will also increase due to Eid. This will boost the dollar flow to some extent. Besides, it has been learned that many expatriates are bringing money at a higher price than the declared price.
According to the data of Bangladesh Bank, USD 456.1 million came through Islami Bank, USD 156.3 million came through The City Bank and USD 122.3 million through Pubali Bank. After that, USD 107.5 million came through Social Islami Bank, USD 98.7 million through Al-Arafah Islami Bank and USD 94.4 million through Agrani Bank. Social Islami and Al-Arafah Islami Bank suddenly came to the top list in receiving remittance.
The government has increased the incentive rate from 2 per cent to 2.5 per cent for sending remittance through banking channel. However, remittance inflow slowed in the country after the dollar-crisis emerged. However, there are festivals like Pahela Baisakh and two Eids ahead. Remittance reception multiplies during the festival. Banks are expecting a significant inflow of remittance this month as well.
It is known that expatriates deposit remittance in various money exchange and remittance houses and banks. If anyone wishes to send money to a specific bank in the country, it is credited instantly. Those who do not have an account can collect remittance from banks or specific points using their mobile number. The recipient gets a code in their mobile phones. The money can be withdrawn using the code. Banks compete with each other to purchase the remittance and transfer the money immediately if the account number belongs to any other bank.