Remittance stumbles slightly in November

Growth in remittance income slowed slightly in November compared to October.

The flow decreased towards the end of last month, after a record $1 billion in remittances came in the first 12 days.

Total remittances in November were $2.07 billion, which was 1.6% less than the $2.11 billion that came in October.

However, remittances grew by 33% in November compared to the same month of the previous year.

In the first five months of the current financial year (July-November), remittances jumped by 41% compared to the same period last year, reaching $10.9 billion.

Distinguished fellow of the Centre for Policy Dialogue (CPD) Professor Mustafizur Rahman told The Business Standard despite a slight decline in November compared to October, the high flow of remittances was still continuing.

He urged the government departments concerned to look into the reasons for the high growth of remittances during the coronavirus pandemic, adding whether there was any misuse of the 2% incentive should be investigated.

Apprehending that the high growth of remittances might slow down next year, Dr Mustafizur said many expatriates had sent their savings to the country fearing deportation during the pandemic. "With the gradual decrease of the second wave of the pandemic, the remittance flow might also come down."

To increase remittance income legally, the government has continued to provide a 2% cash incentive in the current financial year like the previous fiscal year. Tk3,060 crore has been allocated for cash assistance in the current financial year.

The same amount was allocated in the last financial year.