Remittance hit a 15-month low in March due to coronavirus fallout | The Daily Star
06:05 PM, April 03, 2020 / LAST MODIFIED: 06:14 PM, April 03, 2020

Remittance hit a 15-month low in March due to coronavirus fallout

Remittance hit a 15-month low in March due to the economic fallout in the global economy stemming from the coronavirus pandemic.

In March, expatriate Bangladeshis sent home $1.28 billion, down from 12 per cent a year ago and 11.36 per cent one month earlier, according to data from the central bank.

The ongoing economic crisis, which has derived from the Covid-19 outbreak, has put an adverse impact on remittance, said a central bank official.

The country's major economic indicators including exports, imports and mobilising revenue have been showing poor performance in recent months, but remittance continued to maintain an upward trend.

This helped mitigate the balance of payments related crisis as well, the Bangladesh Bank official said.

The Bangladesh Bank data showed that the monthly volume of remittance stood at $1.20 billion in December, after which the volume maintained a satisfactory trend till February.  

The central bank official feared that remittance would drop further in the days to come, as the ongoing financial crisis may be prolonged.

The price of petroleum in the global market has sharply declined in the recent period, which has made the financial activities come to a halt in the Middle East, the region where the majority of Bangladeshi expats work.

The government's move to provide a 2 per cent cash subsidy for remittance senders from fiscal year 2019-20 had earlier helped increase remittance significantly.

But the policy measure is not working due to the ongoing financial crisis.

Between the months of July and March this fiscal year, expatriate Bangladeshis sent home $13.78 billion, up 16.15 per cent from one year ago.

But the dip in the trend might continue as long as the pandemic is prolonged.

 

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