Economists on robust remittance inflow

Besides, they said, the rise in demand for family expenses amid the Covid-19 crisis and the Eid festivals, as well as two percent incentive against inward remittance also might have played an important role behind this trend.

The Bangladeshi migrant workers sent US$ 2.59 billion remittance in July, which is a record for a single month and much higher than that of US$ 1.83 billion in June last year. Despite Covid-19 lockdown in many countries during the second half of the last fiscal year, the migrant workers sent a record US$ 18.2 billion remittance in the 2019-20 fiscal.

Noted economist Dr Debapriya Bhattacharya, a distinguished fellow at the Centre for Policy Dialogue (CPD), said once the normal air traffic is restored, it will be clear fully how many people will actually be returning permanently.

“So, the last two months’ inflow of remittance shouldn’t give us any sense of complacence as the situation remains fluid,” he told UNB.

Noting that the inflow of remittance usually increases during religious festivals like Eid and also during national and local body elections, he said the health crisis is seen as the third phenomena here.

Amid the Covid-19 crisis, the migrant workers are sending larger amounts of money to meet the need of their families because of the slowdown here, which is one issue from the demand side. The second issue is they are possibly sending their last savings before they exit, said Dr Debapriya.

“Because, two major trends are seen in the host countries — one is localisation of employment and fall in oil prices leading to low demand of labour,” he added.

Continue reading at: The Daily Star

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