Bangladesh Bank officials expect remittance to set a new record in January 2020
In first 15 days of January this year, Bangladesh received $957 million as remittance from migrants which is a record for highest remittance received by the country in such period, said the Bangladesh Bank.
This is the expected effect of government declaration of two percent incentive on remittance in this fiscal year, the central bank sources said.
According to the Bangladesh Bank data, in December 2019, Bangladesh received $1,687 million in remittance, which was the second-highest for a single month's remittance earnings.
In May 2018, the migrants sent the highest remittance of $1,748 million.
The Bangladesh Bank officials expect the remittance to set a new record in January 2020.
Kazi Sayedur Rahman, executive director of the Bangladesh Bank told The Business Standard, "The government initiative to give incentive on remittance is working great. If this trend continues this January, inward remittance may break all previous records of a single month."
"Everbody in Bangladesh, now, knows what remittance is through word-of-mouth. There has been a change of mind among the people; they are not sending money through illegal channels like hundi," said Finance Minister AHM Mustafa Kamal.
"The government has taken a good initiative to encourage the expatriates to send money through the right channels. Now the government will not look for the source of remittance. It will be considered a tax-free asset. I am thankful to those who are increasing the remittance volume every day."
In the first six months of the fiscal year 2019-20, remittance increased by 25.46 percent, reaching $9,403 million.
Remittance inflow reached a new height of $18.35 billion, a record in 2019 calendar year, according to the Bangladesh Bank data.