Bangladesh received $1704.45 million in remittances in January 2022, which is $73.79 million more than in December 2021.
The Bangladesh Bank (BB) released the latest remittance update of inward remittances sent by the non-residents Bangladeshis (NRBs) through different banks.
The remittance inflow got momentum through the legal channel in January as the government raised the incentive from 0.50 per cent to 2.5 per cent, insiders said.
Some banks also provided an additional 1.0 per cent to attract remittance through the particular banks, as per a UNB report.
Bangladesh received $24.77 billion in the last 2020-21 fiscal year through the banking channel as the transaction through it came down due to international flight operation halted for Covid-19 pandemic.
The remittance inflow through the legal channel saw a decline in the current fiscal year as it got diverted to illegal channels, including hundi, after the global flight operation eased.
However, the overall remittance inflow is lower in the current financial year compared to the previous year.
According to the central bank, Bangladesh received $11.95 billion in remittances in the first seven months of the current fiscal year.
The expatriates sent $1871.49 million in remittances in July, $ 1810.10 million in August, $ 1726.71 million in September, $ 1646.87 million in October, $1553.70 million in November, $1630.66 million in December and $1704.45 million in January of the current fiscal year (FY22).
How remittance benefits Bangladesh
The inward remittance to Bangladesh has lifted many people from poverty and served as a cushion for families during difficult times, as the country saw during the pandemic.
According to economists, remittance has been the backbone of the National economy as it provides inputs in financing Bangladesh's trade deficit.
According to a recent study by the World Bank, remittance has helped to reduce the poverty level in Bangladesh by 1.5 per cent.