Ramzan brings milestone of $15b inward remittances

The economic growth of Bangladesh can be attributed predominantly to the remittances received by the country. With increased migration to the Kingdom of Saudi Arabia and Malaysia in 2014-15, there has been a significant surge in remittances to Bangladesh and the country achieved a new milestone of $15 billion, this Ramzan.
Last year, foreign remittances contributed approximately 9 per cent of the country’s GDP. Over the years, remittances have emerged as a key driver of national income and poverty reduction. Remittances are the largest source for improving foreign exchange reserves.
According to a local newspaper research, this country known as the land of surplus manpower, in 2013-14, approximately 4.10 lakh people from Bangladesh migrated to countries like GCC, the USA, the UK, etc. seeking job opportunities.
Large scale infrastructural developments in the Gulf, the re-opening of KSA for the Bangladeshi migrant workforce, recruitment plans by Malaysia under the new B2B mechanism and switching from informal channels to formal channels, are some of the key factors that have increased the demand for Bangladeshis, leading to more remittances flowing into the country.
According to Bangladesh Bank, remittances in the fiscal year 2014-15 crossed its all time high and reached a whopping $15.3 billion, a 7.6 per cent increase from the previous fiscal year, which stood at $14.23 billion.
A typical surge in remittances is witnessed during the festive season. Festivities and culture are the strongest aspects that connect migrants to their homeland. Even though they may not be physically present, Bangladeshis working and living overseas play their parts during festivals, by sending money back home, for their families to partake in the traditions of these festivals.
Ramzan is one of the most widely celebrated festivals in Bangladesh. The growth is predominant during this month-long Holy festival that culminates to Eid-ul-Fitr.
On average, semi-skilled workers remit about 70- 80 per cent of their earnings each month, however, during Ramzan due to the early receipt of salaries and festive bonuses, they try and save 10 per cent more to send back to their families.
The money is used by the families for restoration of the houses, if any, shopping for clothes, buying gifts and confectionery, amongst others. Workers manage to save the extra money by making fewer calls home and by cutting down on their meal expenses by attending Iftars organised by mosques and corporate.
According to the Bangladesh Bank, the remittances received in the month of June, which includes the initial days of Ramzan, stand at $ 1.4 billion, which was 11.3 per cent more than the inward remittances received in June last year.
 Clearly, we see that the Holy month of Ramzan has brought Bangladesh to a new milestone, by registering the highest inward remittances, ever received by the country.

The writer is COO of Xpress Money and can be reached at [email protected]

Ramzan brings milestone of $15b inward remittances

The economic growth of Bangladesh can be attributed predominantly to the remittances received by the country. With increased migration to the Kingdom of Saudi Arabia and Malaysia in 2014-15, there has been a significant surge in remittances to Bangladesh and the country achieved a new milestone of $15 billion, this Ramzan. Last year, foreign remittances contributed approximately 9 per cent of the countrys GDP. Over the years, remittances have emerged as a key driver of national income and poverty reduction. Remittances are the largest source for improving foreign exchange reserves. According to a local newspaper research, this country known as the land of surplus manpower, in 2013-14, approximately 4.10 lakh people from Bangladesh migrated to countries like GCC, the USA, the UK, etc. seeking job opportunities. Large scale infrastructural developments in the Gulf, the re-opening of KSA for the Bangladeshi migrant workforce, recruitment plans by Malaysia under the new B2B mechanism and switching from informal channels to formal channels, are some of the key factors that have increased the demand for Bangladeshis, leading to more remittances flowing into the country. According to Bangladesh Bank, remittances in the fiscal year 2014-15 crossed its all time high and reached a whopping $15.3 billion, a 7.6 per cent increase from the previous fiscal year, which stood at $14.23 billion. A typical surge in remittances is witnessed during the festive season. Festivities and culture are the strongest aspects that connect migrants to their homeland. Even though they may not be physically present, Bangladeshis working and living overseas play their parts during festivals, by sending money back home, for their families to partake in the traditions of these festivals. Ramzan is one of the most widely celebrated festivals in Bangladesh. The growth is predominant during this month-long Holy festival that culminates to Eid-ul-Fitr. On average, semi-skilled workers remit about 70- 80 per cent of their earnings each month, however, during Ramzan due to the early receipt of salaries and festive bonuses, they try and save 10 per cent more to send back to their families. The money is used by the families for restoration of the houses, if any, shopping for clothes, buying gifts and confectionery, amongst others. Workers manage to save the extra money by making fewer calls home and by cutting down on their meal expenses by attending Iftars organised by mosques and corporate. According to the Bangladesh Bank, the remittances received in the month of June, which includes the initial days of Ramzan, stand at $ 1.4 billion, which was 11.3 per cent more than the inward remittances received in June last year. Clearly, we see that the Holy month of Ramzan has brought Bangladesh to a new milestone, by registering the highest inward remittances, ever received by the country. The writer is COO of Xpress Money and can be reached at [email protected]