Remittances are playing an instrumental role in acting as a catalyst for socio-economic development in Bangladesh. At this critical juncture, with a war-torn world economy and our dwindling foreign exchange reserves, increasing our remittances as a major source of foreign currency reserves is more crucial than ever before. As per the data of KNOMAD via the World Bank, Bangladesh received a substantial amount of USD 21.5 billion in 2022, primarily from migrants in the US, UK, Southeast Asia, and the Middle East, making Bangladesh the seventh highest recipient of remittance globally.
Recent times have brought some unexpected challenges, marked by fluctuating migration patterns and remittance figures. Despite a record 1.136 million migrants last year and 618,000 in the first half of this year, the anticipated increase in remittances did not materialise. Emigrants sent USD 2.199 billion, USD 1.973 billion, and USD 1.599 billion in June, July, and August 2023, respectively, followed by a 41-month low in September (USD 1.343 billion).
Factors such as migrant labour composition, recruitment expenses, and reliance on informal channels all contributed to this fall, prompting government intervention and strategic initiatives. Understanding the underlying mechanisms of the unexpected drop in remittance inflows is critical as Bangladesh strives to revitalise its remittance corridor for long-term growth. To ensure a prosperous future for Bangladesh and its diaspora, a concerted effort involving policy innovation, talent enhancement, and technological integration is required.
Md. Shah Jalal
Editor
IDLC Monthly Business Review
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