BB expects remittance income to cross $11b mark this fiscal

http://www.thefinancialexpress-bd.com/more.php?news_id=91094

BB expects remittance income to cross $11b mark this fiscal
Siddique Islam

Bangladesh Bank expects the inward remittance to record more than US$ 11 billion by the end of the current fiscal as a special move has already been made to increase its flow from different parts of the world.

“We expect that the inflow of remittances may cross $11 billion mark by the end of this fiscal,” a senior official of the Bangladesh Bank (BB) told the FE, adding that the central bank had estimated the figure on the basis of the last six months flow of remittances.

Bangladesh received $5.535 billion during the July-December period of fiscal 2009-10, registering a 22.89 per cent growth over the same period of the previous fiscal, according to the central bank statistics.

The latest figure shows that despite the slowdown of overseas jobs, inflow of remittance has maintained a robust growth — a continuation of the trend in last fiscal year when remittance grew 22.41 per cent, the BB officials said.

“We expect the upward trend of inward remittances to continue in the near future,” another BB official said, adding that the stable exchange rate of the local currency against the US dollar was also contributing to higher flow of inward remittances.

The central bank earlier took a series of measures to encourage expatriate Bangladeshis to send their hard earned money through formal banking channel instead of the illegal “hundi” system to boost the country’s foreign exchange reserves.

As part of the measures, the BB issued 26 more licences to 14 commercial banks recently for setting up exchange houses in different parts of the world aiming at expediting remittance inflow.

The central bank has, so far, given approval to establish 295 exchange houses and set up 840 drawing arrangements abroad to boost flow of remittance through formal channels.

Besides, the BB has given permissions to 13 both local and foreign commercial banks to disburse remittances using networks of 14 non-governmental organisations (NGOs.), including BRAC and ASA, across the country.

Four state-run commercial banks and dozens of private commercial banks have also stepped up efforts to increase remittance flow from the Middle East, the United Kingdom, Japan, Canada, Australia, Malaysia, Singapore, Italy and the United States.

“We’ve a plan to establish a good number of exchange houses at Canada, the United States, Europe, Australia and the countries in the Meddle East to speed up remittances from the counties using official channel,” Managing Director and Chief Executive Officer of the Agrani Bank Limited Syed Abu Naser Bukhtear Ahmed told the FE Saturday.

He also said the board of directors of the state-owned bank has already given permission for setting up the exchange houses aboard. “We’re seeking permission from the central bank in this connection,” he added.

“Our efforts will continue to establish new contacts with overseas exchange houses so that our overseas workers can find it easier to send money back home,” a senior official of a private commercial bank said.

Some banks are trying to expand their network to expedite the delivery of remittances to the beneficiaries across the country, he added.