Remittances to Bangladesh

Remittance has become a major contributor to the Bangladeshi economy. As the emigrant workers from Bangladesh gradually increased over the years, the amount of annual remittance to the country significantly rose. According to World Bank, Bangladesh is now one of the largest recipients of remittance with almost $15.3 billion in 2018. It was third highest recipient of remittance in South Asia in 2018 [1][2][3][4] A survey on the remittance usage conducted by Bangladesh Bureau of Statistics (2013) shows that 32.81% and 32.82% of the remittances are used for food and non-food expenditure respectively. On the other hand, 18.84% of remittances are used for durable and other expenses including 17.39% for utilized in the purchase of land. In case of investment and savings, Bangladesh Bureau of Statistics revealed that 33.45% of remittances goes to investment and 13.74% of remittances goes to savings.[5]

History

In 1974, Wage Earners' Scheme was initiated in order to help the Non-resident Bangladeshis remit their earnings home through legal channels. The scheme soon became popular among the Bangladeshis working abroad. Some $11.8 million was remitted to Bangladesh in the fiscal year of 1974-75. The amount rose to over $350 million in the fiscal year of 1980-81 and to over $750 million in the fiscal year of 1990-91. India has been the largest source of foreign remittance to Bangladesh or send money to Bangladesh. UAE, Qatar, Oman, Bahrain, Kuwait, Libya, Iraq, Singapore, Malaysia, the US and the UK are also major sources of foreign remittance.[6]

The Bangladesh Bank annually names top 10 diaspora Bangladeshis who have made the highest remittances and in recognition of their contribution to the economy through remittance. One of these has been Mahtabur Rahman chairman of Al Haramain Hospital and managing director of Al Haramain Perfumes who has been listed in 2013, 2014[7] and 2015.

Remittances to Bangladesh by fiscal year and country
Year Saudi Arabia UAE Qatar Oman Kuwait USA UK Malaysia Singapore Italy Others Total (in million USD)
2019-20 4015.16 2472.56 1019.60 1240.54 1372.24 2403.40 1364.89 1231.30 457.40 699.15 1928.77 18,205.01
2018-19 3110.40 2540.41 1023.91 1066.06 1463.35 1842.86 1175.63 1197.63 368.33 757.88 2241.47 16,419.60
2017-18[8] 2591.58 2429.96 844.06 958.19 1199.7 1997.49 1106.01 1107.21 330.16 662.22 2417.34 14,981.69
2016-17 2267.22 2093.54 576.02 897.71 1033.31 1688.86 808.16 1103.62 300.99 510.78 1489.24 12,769.45
2015-16 2955.55 2711.74 435.61 909.65 1039.95 2424.32 863.28 1337.14 387.24 1798.94 14,931.16
2014-15 3345.23 2823.77 310.15 915.26 1077.78 2380.19 84.46 135.28 35.5 4209.28 15,316.90
2013-14 1477.81 1282.43 122.09 315.95 547 2323.32 812.34 489.46 197.27 780.19 6,772.75
2012-13 3829.45 2829.4 286.89 640.11 186.93 1859.76 991.59 997.43 498.79 1370.78 14,461.10
2011-12[9] 3684.3 2404.78 335.33 400.93 1190.14 1498.46 987.46 847.49 31.46 1183.03 12,843.40
2010-11 3290 2002.6 319.4 334.3 1075.8 1848.5 889.6 703.7 202.3 984.1 11,650.30
2009-10 3427.05 1451.89 360.11 349.08 1019.18 1890.31 827.51 587.09 193.46 881.72 10,987.40
2008-09 2859.09 1754.92 343.36 290.06 970.75 1575.22 789.65 282.2 165.13 658.88 9,689.26
2007-08 2324.23 1135.14 289.79 220.64 863.73 1380.08 896.13 92.44 130.11 582.49 7,914.78
2006-07 1734.7 804.84 233.17 196.47 680.7 930.33 886.9 11.84 80.24 419.28 5,978.47
2005-06 1696.96 561.44 175.64 165.25 494.39 760.69 555.71 20.82 64.84 306.14 4,801.88
2004-05 1510.46 442.24 136.41 131.32 406.8 557.31 375.77 25.51 47.69 214.78 3,848.29

Remittances to Bangladesh by fiscal year
Remittance by fiscal year [10]
YearRemittancesPercent GDP
1990–1991US$763.91 M
1991–1992US$849.66 M
1992–1993US$944.57 M
1993–1994US$1,088.72 M
1994–1995US$1,197.63 M
1995–1996US$1,217.06 M
1996–1997US$1,475.42 M
1997–1998US$1,525.43 M
1998–1999US$1,705.74 M
1999–2000US$1,949.32 M
2000–2001US$1,882.10 M
2001–2002US$2,501.13 M
2002–2003US$3,061.97 M
2003–2004US$3,371.97 M
2004–2005US$3,848.29 M
2005–2006US$4,802.41 M
2006–2007US$5,998.47 M
2007–2008US$7,914.78 M
2008–2009US$9,689.26 M
2009–2010US$10,987.40 M10.11%
2010–2011US$11,650.32 M
2011–2012US$12,843.43 M
2012–2013US$14,461.14 M
2013-2014US$14,228.26 M
2014-2015US$15,316.91 M
2015–2016US$14,931.18 M
2016–2017US$12,769.45 M
2017–2018US$14,981.69 M
2018–2019US$16,419.63 M5.73%
2019–2020US$18,205.01 M

Remittance sending system

Formal system

Remittance is sent formally through various ways such as demand draft, traveler's check, telegraphic transfer, postal order, direct transfer, Automatic Teller Machine. etc.[6]

Informal system

Hundi or money carrier system is prevalent as informal process of remittance sending in most cases. The most popular reasons behind the preference towards Hundi system is the absence of any transaction charges, its fast delivery and the opportunity to maintain confidentiality.[6]

References
  1. "Bangladesh among top 10 earners". The Daily Star. UNB.
  2. "Monthly data of Wage earner's remittance". Bangladesh Bank.
  3. "Bangladesh may get $15 billion in remittance in 2013". bdnews24.com.
  4. "Bangladesh 3rd in South Asia, 11th globally: WB". The Daily Star. 2019-04-10. Retrieved 2019-09-27.
  5. "Utilisation of Workers' Remittances in Bangladesh" (PDF). Bangladesh Bank. Research Department Bangladesh Bank. November 2017. Retrieved August 6, 2020.
  6. Bangladesh Economic Update: Remittance, 8 September 2011, Unnayan Onneshan, Dhaka, p. 9.
  7. "From transit passenger to business tycoon". Khaleej Times. Retrieved 30 March 2017.
  8. "Country-wise Inward Remittances". Bangladesh Bank. Retrieved 2019-09-27.
  9. "2016 Statistical Yearbook" (PDF). Bangladesh Bureau of Statistics. May 2017. p. 110. Retrieved 2019-10-05.
  10. "Wage earners remittance inflow". Bangladesh Bank. July 2016. Retrieved August 3, 2020.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.