The country’s remittance wheels have been set in motion, reaching unprecedented levels in November as expatriates capitalize on doubled incentives and government measures.
According to the weekly update report released by the Bangladesh Bank on Sunday, the first 17 days of the month witnessed a windfall in the income of expatriates, with remittances totaling an astounding USD 118.77 crore.
The surge marks a significant increase compared to that in the same period in the previous month of October, where remittances amounted to USD 124.99 crore.
Economic experts attribute this surge to the expatriates increasingly utilizing legal channels for sending remittances, particularly since October 22, when the government implemented a 2.5 percent incentive on every dollar.
Notably, the central bank has further spurred the remittance flow by instructing an additional 2.5 percent incentive, making the total incentive five percent. Commercial banks have swiftly implemented this directive, resulting in an observable spike in remittance transactions.
According to data from Bangladesh Bank, remittances in the first 17 days of November were distributed as follows: USD 7.85 million through state-owned banks, more than USD 3.51 crore through specialized banks, more than USD 107.4 crore through private banks, and an additional USD 36 lakh foreign sector banks.
If the current trend continues, the remittance figure for November is anticipated to surpass the staggering USD 197.75 crore recorded in the outgoing October. This surge follows the increasing trend observed in recent months, with remittances reaching more than USD 134.43 crore in September, more than USD 159.94 crore in August, and more than USD 197.31 crore in July of the 2023-24 financial year.
The surge in remittances not only reflects the financial contributions of the expatriate community but also underscores the positive impact of government incentives and measures in facilitating legal channels for money transfers. The nation eagerly anticipates further economic stability and growth as remittances continue to play a pivotal role in the country’s financial landscape.
