The Bangladesh Bank, the country’s apex bank, is worried over the drop in remittances from abroad.
It has taken a series of measures to encourage expatriate Bangladeshis to send their hard-earned money home through the formal banking channel instead of illegal “hundi” system in order to boost the country’s foreign exchange reserves, BB officials said.
The flow of inward remittance dropped by nearly 25 per cent in April following the coronavirus outbreak in different parts of the world, he said.
Remittances from Bangladeshi nationals working abroad were estimated at US$ 1.08 billion in April 2020, registering a fall of $ 353 million from the same month a year ago. It was $1.43 billion in April 2019.
On the other hand, the flow of inward remittances fell by 16 per cent in April from $1.29 billion a month ago, according to the central bank’s latest statistics.
Experts feared that the inflow of remittance might fall further in the coming days if the pandemic continues.
” The country’s economy may face an extra pressure in the near future if the falling trend in inward remittance persists,” said former Bangladesh Bank Governor Dr Atiur Rahman.
He said that Prime Minister Sheikh Hasina distributed total fund of Taka 2,500 crore BDT among the 50 lakh families through the mobile financial services (MFSs) .
But that’s not enough, he said . Manpower exports and inbound remittances from Bangladesh’s huge mass of expatriate workers constitutes the second largest foreign exchange earning sector of the country’s growing economy.