The New Nation - Internet Edition

THE inward flow of remittance shows a declining trend. It is particularly observed in the remittance flow from American and European countries. The decline was 17.4 percent in October than the previous month. This trend has been reflected in the account books of commercial banks that channel remittances. The foreign exchange reserve also came down to US$5.17 billion on November 3 from US$5.80 billion on October 23.

The Bangladesh Bank is reported to have identified reluctance of the expatriate Bangladeshis in sending their hard-earned money as a major cause. Major currencies are losing in value as a likely consequence of the global economic crisis. The remitters see sending money to the country less rewarding at present. Another likely cause of the trend is that the expatriates have to spend more on subsistence than they used to do before. According to the central bank, inward flow of remittance usually increases before festivals to meet the additional expenditure by the families of the expatriates and falls after festivals. Bangladesh received US$794.18 million from the expatriates in the month of September before the Eid-ul-Fitr. The amount came down to US$655.98 million in October. An increase of remittance is expected before the next Eid.

Remittance from Bangladeshis working abroad is the highest source of foreign exchange and is one of the main pillars of the national economy. It helps maintain macro-economic stability of the country. Any drastic fall in remittance will seriously weaken the economy. The causes of the fall in remittance urgently need to be investigated to seal loopholes, if any. Appropriate measures should be taken to maintain a comfortable foreign exchange reserve in the face of the global economic crisis.