Single month remittance recorded $2.60bn for the first time

The monthly inflow of remittance hit an all-time high in July for Eid-ul-Adha, with the figure reaching almost $2.60 billion.

According to the Bangladesh Bank data, the country received $2.59 billion in remittance from expatriates during July, which is $1 billion or 62.89 percent higher than that in the same month last year.

In July last year, $1.59 billion in remittance flowed in.

In June last, the final month of fiscal year 2019-20, expats remitted $1.83 billion.

In recent months, migrants from Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, the United Arab Emirates, Malaysia and the United States, among other countries, have been sending a higher amount of money.

Last week, officials of the central bank forecasted that the remittance inflow in July would reach around $2.5 billion depending on the continuation of the recent trend.

They said the remittance inflow usually increases ahead of Eid-ul-Fitr and Eid-ul-Adha, two major religious festivals for the Muslims.

Besides, joblessness and drop in income of the migrants' near and dear ones in Bangladesh due to the coronavirus-induced economic shock prompted many to remit higher amounts in the past few months as a form of support, officials said.

The record remittance figure in July came as a continuation of that in the immediate past fiscal year 2019-20 when the country received $18.20 billion amid the pandemic. It was a record until then as the country had never received such an amount in a fiscal year before.

Even though the inflow of remittance spiked since May this year, migration from the country since the coronavirus outbreak has been witnessing a significant fall since January as many countries have still kept their borders shut for foreign nationals.

When asked why the remittance inflow increased despite the pandemic, Policy Research Institute's Executive Director Ahsan H Mansur told The Business Standard that many Bangladeshi expatriates are sending money as part of their preparation to return home due to joblessness abroad.

Economies of almost all countries, including the destinations of Bangladeshi migrants, have been facing stagnations, resulting in job cuts, he said.

"This is a major reason behind the increased inflow of remittance even though migration from Bangladesh remained almost halted in the last several months due to coronavirus," explained Mansur, also the chairman of Brac Bank.

Besides, the inflow of remittance usually increases before Eid, he added.

Apart from these, a fall in income and joblessness of family members and relatives in Bangladesh could be behind the surge in the remittance inflow, he also said.

With the record inflow of remittance in July, the foreign exchange reserve had crossed the $37-billion mark on July 27.

Last fiscal year, the government introduced a 2-percent cash incentive for remittance in order to encourage expats to send money home through legal channels.