Dr. Atiur Rahman, Governor, Bangladesh Bank :
As you know millions of Bangladesh manpower is working abroad in almost 157 countries of the world. According to the World Bank, in 2013 Bangladesh ranked 8th position in the list of remittance recipient country in the world. In FY2014, remittance accounts for 66% of foreign reserve while it is almost 9 times of the current account balance in the same fiscal year. As per govt. statistics, nearly 2.35 million workers have migrated in last 5 years. In FY2013, the inflows of remittance were around USD 14.46 billion, a 12.59 percent growth ushering a current account surplus for the last five years, only in south Asia despite being a trade deficit country. This demonstrates the inherent strength of our external sector and hence that of our currency. Obviously, we must give credit to NRBs for attaining this strength.
There has been a gradual change in the share of remittance flows by regions shifting the focus from the Middle East to the East Asia, Europe and the North America. For instance, Malaysia has become the fifth largest remittance source country for Bangladesh in FY2013. Remittance inflow has always been gender-biased representing the women little. However, there is a notable change in this tradition. Beside the traditional flows of male workers in abroad, the female expatriates with a marked number of 158, 862 migrations during the period September, 2009 to December, 2013 added a new dimension in the Non-Resident Bangladeshi portfolios.
According to the Global Economic Prospect 2006 of the World Bank, 54% of total remittance inflow was received through the formal channel, whereas, in year 2009, the share of remittance inflow throw the formal channel reached at the level of 81% indicating substantial positive outcome of the efforts made Bangladesh Bank. Subsequent introduction of mobile banking and involvement of MFIs in inward remittances reduced the necessity of sending money through informal channel. Banks are now using the branch networks of the MFIs and Post Offices as the sub-agent for remittance distribution. A recent addition to these channels is remitting money using the Singer Bangladesh Limited outlets through Bank Asia. Mobile banking services have also been made available to our remitters. All these payment facilities have virtually eliminated the informal remittance inflows reducing the risk of counterfeit. Furthermore, Bangladesh bank has established a separate department titled ‘Financial Integrity and Customer Services Department’ to handle any complaints and suggestions by the customers or any stakeholders at home and abroad to ensure the smooth and hassle-free services. I can assure you that as an NRB your complaint will be dealt with the highest priority.
There is always high demand for skilled workers abroad. In contrast, 55% of our migrant workers are unskilled and their wage rate remains low, which have downward impact on the earnings of the migrants. I think, there is a considerable scope to improve their earnings if they can be further trained in different vocational training centres to develop and upgrade their skills.
Bangladesh government has introduced many lucrative schemes like the Wage Earner’s Development Bond, the US Dollar Premium Bond, the US Dollar Investment Bond, Non-Resident Foreign Currency Deposits (NFCD) account, and National Savings Schemes to boost the investment by the expatriates. The Non Resident Bangladeshis can repatriate the principal amount of Wage Earners’ Development Bond and of the NFCD any time without any restriction. Moreover, the accrued interest and profit income of the expatriates in these schemes are also exempted from tax. The Government has also introduced the Non-Resident Investor’s Taka Account (NITA) to facilitate the Non-Resident Bangladeshi’s to invest in shares and securities with their earned foreign exchange. In addition, CIP (NRB) cards, and Privileges cards are launched for the expatriates to encourage more remittance inflows beside the available tax holiday and tax exemption facilities. Bangladesh Bank has planned to launch ‘BB Remittance Award’ to the best performing 20 remitters and 5 bond purchasers from the this year.
