Bangladesh recorded a sharp rise in remittance inflows in May, as migrant workers sent more money home in the run-up to Eid-ul-Azha, which falls in early June.
The US House Budget Committee voted late on Sunday to move forward with President Donald Trump's "One Big Beautiful Bill Act", a proposal that could make sending money back home more expensive for three lakh Bangladeshis currently living in the United States.
Remittance inflow in the first ten months and eleven days of this fiscal year surpassed $25 billion, breaking all previous records.
Remittance inflow posted a 65% year-on-year jump
The inflow was 82.46 percent higher than the same period last year, according to industry insiders.
Remittance inflows surged by around 78 percent year-on-year in the first 19 days of March as migrant workers sent more money home to relatives ahead of Eid-ul-Fitr, the largest religious occasion in the country.
Bangladesh Bank today relaxed the rules related to the 2.5 per cent incentive extended to remitters if they send money home through the official channel.
The government high-ups and the top commercial bankers today urged expatriate Bangladeshis to send their money through the legal channel instead of using hundi – an illegal cross-border money transfer network.
Remittance to Bangladesh rose to an eight-month high in March as migrant workers sent home a higher amount to help their families meet an increased expenditure during Ramadan, officials data showed.
Remittances fell into a negative territory last month after showing a dazzling display in December and January.
Remittance hit a four-month high in January after the government increased cash subsidy to remitters.
Remittance slightly increased in the just concluded year after experiencing a falling trend in the last couple of months.
The government has increased cash incentive on remittance to 2.5 per cent from 2 per cent to encourage migrants to use proper channels to send money home.
The flow of remittance to Bangladesh went down heavily in November as many expatriate Bangladeshis continue to prefer the informal channel in sending their money.
The government has selected 57 non-resident Bangladeshis to honour them with commercially important person (CIP) status for their contribution to the south Asian country’s economy.
Remittances have multipurpose positive effects on rural economies, which enhances Bangladesh’s inclusive growth, according to economists.
