bdnews24.com :
Remittance inflow has dropped, for the first time in several decades, in the just concluded fiscal year (FY), which recorded 1.6 percent less transfer of funds from abroad than the corresponding period of the previous FY.
Expatriate Bangladeshis remitted $14.22 billion in 2013-14 FY while they sent $14.46 billion in the 2012-13 FY.
During the 1975-76 FY, only $10 million was remitted, according to remittance data of the central bank.
Since then the remittance kept increasing. In June 2013-14 FY, $ 1.28 billion came as remittance, while in May the amount was $ 1.21 billion, Bangladesh Bank’s (BB) General Manager Quazi Saidur Rahman told bdnews24.com.
However, the June remittance inflow was 21.6 percent more than the same period of the 2012-13 FY when $1.05 billion was remitted.
Bangladesh Institute of Development Studies Research Director Zaid Bakht expressed satisfaction over the amount of remittance.
“From the inflow at the beginning of the fiscal, it appeared that the remittance inflow will be less. But the fear disappeared as remittance of $1.20 billion came in during each of the last four months (March-June),” Bakht told bdnews24.com.
The less inflow in the current fiscal than the previous one was because the Taka became stronger than dollar, he said. Expatriate Bangladeshis sent more remittance in 2012-13 FY as the dollar was stronger than Taka at that time.
According to the BB report, the value of one dollar was equivalent to Tk 81.77 in July, 2012-13 FY. The whole fiscal saw the rate of Dollar above Tk 80.
On Wednesday, the rate of dollar was Tk 77.63.
The central bank’s foreign currency reserve broke all past records due to more remittance inflow at the end of the last fiscal.
The reserve was $21.61 billion on Wednesday, the highest in the history of Bangladesh.
With the reserve it would be possible to meet import cost of seven months, said Saidur Rahman, general manager of Bangladesh Bank.
On June 16, the foreign currency reserve crossed $21.billion, setting a new record.
On Feb 19, the reserve exceeded $19 billion for the first time.
According to the Export Promotion Bureau, export earnings increased 12.56 percent in the first 11 months (July-May) of the last fiscal year than the same period of the previous fiscal.
On the other side, import cost rose 18 percent in the first ten months (July-April) of the just concluded fiscal year.
Bangladesh will have to pay $ 970 million import bill to Asian Clearing Union (ACU) in May-June. The bill will be paid on Thursday.
After paying the bill, the reserves would be down to $21 billion.
The central bank hopes the reserve would soon go above $ 21 billion as the remittance inflow would peak ahead of Eid-ul Fitr.
