Bangladesh’s remittance to drop by $1b this year

Remittance flow to Bangladesh is projected to drop by $1 billion to $21 billion this year from $22 billion last year, according to the World Bank.

Bangladesh, however, retains its position as the seventh highest recipient of money transferred by migrant workers in 2022, says the WB's Migration and Development Brief released today.

"To arrest the drop in remittances, the government offered incentives to migrants by withdrawing the interest ceiling on non-resident foreign currency deposits, the ceiling on internet banking transfers, and removing proof of source of income requirements for remittances," it said.

Remittances to lower-income countries rose around 5 percent to $626 billion, lower than the 10.2 percent jump in 2021, the bank added in a report.

While the reopening of economies as the pandemic receded helped with employment, rising costs "adversely affected migrants' real incomes," the Washington-based development lender said.

Meanwhile, India is on track to receive over $100 billion in yearly remittances in 2022 while Mexico will relieve $60 billion, China $51 billion, The Philippines $38 billion, Egypt $32 billion and Pakistan $29 billion.