Remittance inflow crossed a record four billion US dollars mark growing by over 25 percent in the first 11 months of the current financial year.
Non-resident Bangladeshis (NRBs) sent US$4,386 million during the July-May period of the 2005-06 financial year while the amount was $3,502.46 million during the same period of the last fiscal year, according to Bangladesh Bank statistics.
Remittance inflow remained strong in May as Bangladeshi workers living abroad sent $494.9 million, one of the record highest in a single month.
"Recent devaluation of taka against US dollar is encouraging NRBs to send more money back home," explained a central bank official.
With the present trend continuing, it seems that remittance would be around $400 million more than the expected amount of over $4,500 million by the end of this fiscal, said the official.
The remittance stood at $3,848.29 million in the last financial year.
Increased remittance inflow helped the country's foreign exchange reserve stand at $ 3,106.90 million as of yesterday.
Remittance inflow has been showing a healthy trend since December, which is around $426 million a month on an average. Inflow in December, February and March had hit the record highest and stood at $414.1 million in April.
While speaking at a seminar recently Bangladesh Bank Governor Salehuddin Ahmed identified some hurdles for smoothening remittance, such as lack of easy access to banks and unfavourable investment atmosphere for the expatriates.
Imposition of flat rate for remitting any amount of currency by banks and exchange houses is another bottleneck for lower wage earners, the governor mentioned. "It is difficult to pay £25 for sending £250."
The governor emphasised the need for improving better services by banks and exchange houses and investment-friendly environment to encourage the non-resident Bangladeshis and expatriates to remit more in the country.
He mentioned that the central bank also put its efforts on to encourage NRBs to send their money through official channel.
A source in the Bangladesh Bank said remittance has become a good source of income for some of the banks with strong network abroad.
Bangladeshi wage earners send over US$ seven billion annually and a substantial portion of the total amount still comes through hundi, an illegal way of transferring money, according to bankers.
The bankers also eyed a good scope for further rise in remittance inflow through official channel.
They claimed that the private commercial banks had become more aggressive in remittance business providing quick and reliable services and attracting the Bangladeshi wage earners to send money home through banking channel.
