USD 1.15 bn remittance income in first two weeks of April

Remittances sent home by Bangladeshis living abroad in the first 15 days of April is more than what came in the entire month of April last year. They sent more than USD 1.15 billion in remittances in the first 15 days of April, compared to USD 1.09 billion in April last year.

 

Concerned parties say that Bangladeshis overseas always send a little more in remittances for Ramadan and Eid, compared to other times of the year. Compounded by the Covid-19 second wave, remittance inflows have increased significantly.

 

Of the incoming remittances, US$847 million came through private banks, about US$302 million through state-owned banks, and US$4.25 million through foreign banks.

 

Till 15 April, about half of the remittances came through Islami, Agrani. and Dutch-Bangla Bank. Remittances through Islami Bank amounted to US$334 million, Agrani Bank US$130 million, and Dutch-Bangla Bank US$120 million.

 

Musharraf Hossain, Additional Managing Director (DMD) of Islami Bank, told The Business Standard (TBS) about the increase in remittance inflows, saying people were sending extra money to their families in Bangladesh to cover expenses for Ramadan and Eid.

 

Many people are also sending extra money to cover medical expenses for loved ones infected by the coronavirus. Many Bangladeshis abroad are facing uncertainty as well since many of the countries they are in are encountering the second wave of Covid-19 but are nevertheless sending their savings.

 

Apart from the 2 per cent incentive announced by the government, many banks are also giving an additional one per cent incentive. An additional one per cent incentive is given for sending remittances to the agent outlet account of Islami Bank.

 

Where an incentive of Tk 2,000 is given on Tk 1 lakh, an additional Tk 1,000 is added to the agent outlet, and a total of Tk 3,000 is given to recipients in Bangladesh. The banker thinks that many abroad are sending more remittances because of the additional incentives.

 

According to a recent analysis by the Center for Policy Dialogue (CPD), illegal remittances have almost completely stopped as means of normal communication around the world has been disrupted due to the coronavirus pandemic. So far, more remittances are coming in legally than before and it all adds up in government coffers. The 2 per cent incentive has also played a role in increasing the remittance inflow.