All-engulfing Coronavirus that has already emerged as a threat to world economy has affected the country’s remittance inflow to hit 15-month low in March 2020. The country’s remittance inflow has witnessed a falling trend to stand at $1.28 billion in March, according to Bangladesh Bank (BB) latest data.
This inflow decreased by 13.34 percent during the time comparing the same period of time last year, which was $1.46 billion. Market analysts said this deadly Coronavirus has spread to different countries of the world, including China, Singapore, Malaysia, Italy, Canada, Japan, Hong Kong, the USA and the UAE.
As a result, many expatriates from these countries have returned to Bangladesh which may cast a negative impact on the flow of remittance, they added. On the other hand, some expatriates have faced different difficulties, including fund crisis, as most of the countries are locked down to fight against Coronavirus, they informed.
However, remittance inflow contributes 12 percent to the national GDP. More than 10 million Bangladeshis work abroad. But over 666,000 of them returned home between January and mid-March as the coronavirus spread to all parts of the world. Eminent economist Zahid Hussain told The Bangladesh post, “The outbreak of the Coronavirus in the world has dealt a heavy blow to the global economy, which has affected on 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 work in the middle-East countries feared to lose their jobs as many companies have temporarily closed while many small businessmen are passing critical time following Coronavirus scare.
On the other hand, many expatriates have returned to Bangladesh side by side some new visa holders cannot go abroad for lockdownwhich created a negative situation in the flow of remittance, Hussain mentioned. However, the country’s remittance inflow has witnessed a 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, the remittance inflow has increased mainly for two major reasons, including strong dollar rate against Taka as well as providing 2 percent cash incentive to remitters.
The government has started giving 2 percent cash incentive on money remitted by expatriate Bangladeshis to remove the burden of increased expenses in sending remittances, they said. It will encourage expatriates to send money through legal channels instead of ‘Hundi’, they said adding that the government is working hard and taking various measures locally as well as abroad to boost remittance inflow, they added.
Besides, depreciation of the local currency against the US dollar has also pushed the inflow of remittances up in the recent months, they mentioned. 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, $1.45 billion in February and $1.28 billion in March in 2020 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.
