Remittance & its impact

Abstract

Bangladesh is one of the largest remittance recipient’s countries via overseas earnings since 1976. Remittance has become the second source of export earnings after ready made garments (RMG). According to the data of world bank’s report Bangladesh achieved ninth position in the world and third position in the South Asia region for remittance inflows. Bangladesh entered into the 10 billion club of remittance inflows in FY-2010. Overseas employment and inflow of remittance plays an important role to the economic development in Bangladesh by reducing poverty, creating employment, improving living standard and building up foreign exchange reserves. Remittance in Bangladesh averaged 1255.91 million USD from 2012 until 2020, It has reached an all time high of 1832.63 million USD in June 2020 and recorded all time low of 856.87 million USD in September 2017. One of the most contributing factors of increasing remittance inflows by imposing Bangladesh bank guidelines of restricting remittance inflows through informal channel which might cause hamper remittance inflows.