Investor Presentaiton
Independent Review of
RBD
Bangladesh's Development
Remittance Flows Have Been Declining, But
Expected to Catch Up
Table: Remittance inflow July-May (FY20-FY22)
(in billion USD)
FY20
(July-May)
FY21
FY22
(July-May) (July-May)
16.37
22.84
FY20-FY21 (July- | FY21-FY22 (July-
May) remittance
earnings growth
(in %)
19.19
39.5
May) remittance
earnings growth
(in %)
-15.9
FY20-FY22 (July-
May) remittance
earnings growth
(in %)
17.2
Source: Based on Bangladesh Bank (n.d.)
While remittance growth was a negative (-15.9%) in the first eleven months of
FY2021-22 (July-May), compared to the corresponding period of pre-pandemic
FY2019-20 this was 17.2% cent higher.
ā The floating of currency should reduce the significant difference between the
official exchange rate and the curb market and in the informal hundi/howla
transactions.
ā However, the incentive for remittance (at 2.5% of remitted amount) should
continue for now till the market stabilises when decision can be taken as regards
reduction or elimination of the incentives.
CPD (2022): State of the Bangladesh Economy in FY2021-22 (Third Reading)
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