Coronavirus, that has already emerged as a global threat is likely to make a huge impact on the country’s remittance inflow in the country, experts said.
They said, the deadly virus has spread to different countries of the world including the Middle East, China, Singapore, Malaysia, Italy, Canada, Japan, Hong Kong, and the USA.
As a result, near about 300,000 expatriates from these countries have returned to Bangladesh since beginning of this month which may create a negative effect in the flow of remittance, they added.
On the other hand, many of the returnees have faced different difficulties in withdrawing money and bringing their earned money home as most of the banks did not operate in those respective countries due to locked down to fight coronavirus, they informed.
Eminent economist Zahid Hussain told Bangladesh post, “The outbreak of the coronavirus in the world has dealt a heavy blow to the global economy, which may also affect remittance in Bangladesh.”
“Bangladesh expatriates have faced many challenges abroad as coronavirus has broken down all activities of the world,” he added.
He mentioned most of the unskilled workers of Bangladesh who works in the Middle-East countries anticipated losing jobs as many companies have temporary closed while many small businessmen have passed critical time following coronavirus scare.
On the other hand, many expatriates have returned to Bangladesh while many who had registered to travel abroad for work cannot travel now as visas are not being issued by most of the countries. Such a situation, of course would have a negative impact on the economy.
“Expatriates are returning almost everyday from different countries especially Middle-East for various reasons including visa complications,” some bank officials.
About the impact of coronavirus, Bangladesh Bank executive director and spokesperson Md Serajul Islam told Bangladesh Post, “The central bank is yet to find out any adverse impact on the flow of inward remittances.” He said that the remittance inflow is still good.
This flow will increase during this month as many expatriates has returned in the country with huge remittance.
However, the country’s remittance inflow has witnessed rising trend to stand at $12.50 billion in first eight months in fiscal year 2019-20.
This inflow increased by 20 percent during the time comparing the same period of time last year, which was $10.41 billion, according to Bangladesh Bank.
Market analysts said that the remittance inflow has mainly increased for two major reasons including strong dollar rate against dollar as well as providing 2 percent cash incentive by the government to remitters.
However, Bangladeshi expatriates sent home $1.60 billion in July, $1.44 billion in August, $1.48 billion in September, $1.64 billion in October, $1.55 billion in November and $1.69 billion in December in 2019 as well as $1.64 billion in January and $1.45 billion in February respectively.
In the yearly basis, remittance came at $11.65 billion in FY11, $12.84 billion in FY12, $14.46 billion in FY13, $14.23 billion in FY14, $15.31 billion in FY15, $14.93 billion in FY16, $12.77 billion in FY17, $14.98 billion in FY18 and $$16.42 billion in FY19 respectively.
