Remittance inflow drops in SeptStaff Correspondent
The inflow of remittance decreased by 12.95 per cent in September this year compared with that of the corresponding month in last year, belying the usual trend of a rise in the inflow ahead of Eid festivals.
Bangladesh Bank officials told New Age on Wednesday that it was a negative sign for the country’s macroeconomic situation that the inflow of remittance decreased last month ahead of Eid-ul-Azha, one of the biggest religious festivals for Muslims to be celebrated mid-October.
The drop in the inflow of remittance in September was unusual as the expatriates usually send more money to their near and dear ones in the country ahead of Eid-ul-Fitr and Eid-ul-Azha, they said.
According to the BB data released on Wednesday, the expatriates sent $1.02 billion in remittance in September of the FY 2013-14 against $1.17 billion sent in the same month of the FY 2012-13.
In September the inflow of remittance slightly increased by 2.02 per cent compared with that of August ($1 billion).
A BB official said that the inflow of remittance had increased significantly in the first half of the last fiscal year due to a higher value of US dollar against the local currency taka.
The taka appreciated significantly against the dollar in the second half of the last fiscal year that resulted in an unfavourable condition for the expatriate Bangladeshis to send remittance to the country, he said.
The BB has been purchasing dollars frequently since the last fiscal year to contain the devaluation of the greenback in a bid to encourage the expatriates, he said.
The central bank has already purchased more than $1 billon from the local commercial banks since July 1, 2013.
The central bank had purchased a record amount of dollars worth $4.53 billion in the FY13.
Political unrest is another reason for the decrease in the inflow of remittance in last month as the unrest created an unfriendly business situation in the country, he said.
The non-resident Bangladeshis are now reluctant to send remittances amid stagnation in the country’s investment sector, he said.
The BB data showed that the inflow of remittance also declined by 8.10 per cent in the first quarter of the FY14 compared with that of the same period in the FY13.
The expatriates sent $3.27 billion in remittance in July to September of the FY14 against $3.27 billion sent in the same period of the FY13.
The BB official, however, hoped that the inward remittance might increase this month as Eid-ul-Azha would be celebrated mid-October.
The private commercial banks received $659.418 million in inward remittance in September while the state-owned commercial banks received $334.83 million, foreign commercial banks $20.18 million, and specialised banks $11.90 million.
Islami Bank Bangladesh received the highest amount of remittance — $238.06 million — among the PCBs, while Sonali Bank received the highest amount of remittance — $116.38 million — among the SCBs.
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