2020 a year of record-breaking remittances
Published: 01:58 PM, 4 January 2021
Although various economy indexes were down in the year of the Covid-19 pandemic, the remittances were high. The expatriates sent 20 percent more remittances in the outgoing year than the previous year. All in all, 2020 was the year of record-breaking remittances.
According to the Bangladesh Bank, remittances of Tk 2,174.18 crore ($21.74 billion) came to the country in 2020. In the previous year, i.e. in 2019, remittances came to $18.33 billion – as such, remittances have increased by 20 percent in 2020.
The number of remittances received in the just-concluded year has never been higher in the history of Bangladesh. However, when the coronavirus pandemic started early last year, remittances were expected to be negative. Remittances also declined in April, but it increased steadily.
Of this – Tk 1,294.47 crore ($12.94 billion) came in the first half of the current fiscal year 2020-21, i.e. during July-December and Tk 879.70 crore ($8.79 billion) came in the last six months of the 2019-20 fiscal year, i.e. during January-June.
Last July, remittances reached $2.6 billion – the highest in the history of Bangladesh in a month.
Remittances from more than one crore Bangladeshis in different countries play an important role in the country’s economy which is about 12 percent of the contribution to the country’s GDP.
According to the Bangladesh Bank, remittances sent by expatriates in the last month of December 2020 were $2.5 billion - which is 21.21 percent more than in December 2019. More than $2 billion in remittances came to the country in the first five months of the current fiscal year. In December 2019, remittances of $1.69 billion came to the country.
The government, in the meantime, is giving cash incentive at the rate of 2 percent from the last fiscal year to increase the remittance flow.