Remittance inflow may rebound significantly in Bangladesh in 2022-23 fiscal year as increased number of people flew abroad for jobs, Bangladesh Bank (BB) Governor Fazle Kabir said today.

The local currency today depreciated further against the US dollar, hitting Tk 92 against each green back in the interbank platform.

Bangladesh Bank today relaxed the rules related to the 2.5 per cent incentive extended to remitters if they send money home through the official channel.

The government high-ups and the top commercial bankers today urged expatriate Bangladeshis to send their money through the legal channel instead of using hundi – an illegal cross-border money transfer network.

Remittance to Bangladesh rose to an eight-month high in March as migrant workers sent home a higher amount to help their families meet an increased expenditure during Ramadan, officials data showed.

Remittances fell into a negative territory last month after showing a dazzling display in December and January.

Remittance hit a four-month high in January after the government increased cash subsidy to remitters.

Remittance slightly increased in the just concluded year after experiencing a falling trend in the last couple of months.

The government has increased cash incentive on remittance to 2.5 per cent from 2 per cent to encourage migrants to use proper channels to send money home.

The flow of remittance to Bangladesh went down heavily in November as many expatriate Bangladeshis continue to prefer the informal channel in sending their money.

The government has selected 57 non-resident Bangladeshis to honour them with commercially important person (CIP) status for their contribution to the south Asian country’s economy.

Engaging the country’s vast number of migrant workers and non-resident Bangladeshis (NRBs) in the national development process could open up a new area of economic development.

Remittances have multipurpose positive effects on rural economies, which enhances Bangladesh’s inclusive growth, according to economists.

Twenty-eight-year-old Ahmed Jamal, from Barishal, was working as a labourer in Oman since 2018. He was forced to return to Bangladesh during the pandemic. As a result, he lost his primary source of income along with the hefty recruitment fee he had paid to secure the job initially.

Remittance flow into Bangladesh will turn around in the long term helped by the rapid expansion of fin-tech-based companies despite the ongoing hiccups facing the key source of foreign currency for the country.

The inflow of remittance has been shrinking since the last several months as the number of people, going abroad, is decreasing and money transfers through informal channels like hundi are increasing with the ease of pandemic restrictions.

The flow of remittance to Bangladesh shrank further in October as money transfers through informal channels such as hundi might have returned with the ease of pandemic restrictions. Expatriate Bangladeshis sent $1.65 billion in October, down 4.6 per cent from one month earlier and 21.7 per cent year-on-year, according to data from Bangladesh Bank.

Remittance fell to a 16-month low of $1.72 billion in September, as money transfers through informal channels such as “hundi” might have increased.

Remittance inflow has declined by 8 per cent year-on-year to $1.8 billion in August, lowest in six months due to money transfer through informal channels termed like hundi, increased, bankers said.

Finance Minister AHM Mustafa Kamal has criticised the Centre for Policy Dialogue’s recommendation to increase government monitoring on inbound remittances worth over $5,000.