Remittance rebounds in May due to Eid

Staff Correspondent | Published: 23:14, Jun 01,2020

 
 

The inflow of remittance rebounded to hit a four-month high in May after a sharp fall in the previous month as the expatriates sent money to their near and dear ones before Eid-ul-Fitr, the biggest religious festival for the Muslims.

Eid-ul-Fitr was celebrated in the country on May 25.

The volume, however, dropped by 14.01 per cent or $245 million year-on-year in May due to the joblessness of many migrant workers in different parts of the world amid the coronavirus pandemic.

In May this year, the country received $1.5 billion in remittance against the receipt of $1.75 billion in the same month last year.

In April this year, remittance inflow dropped to $1.09 billion, the lowest after September, 2017 when the figure was $856.87 million.

Remittance, a major driving force of the country’s economy, has witnessed a sharp decline since January this year after the outbreak of coronavirus in most the countries across the globe.

As coronavirus turned pandemic, the governments across the globe went for prolonged shutdowns, leaving many of the Bangladeshi expatriates jobless and causing a fall in remittance inflow.

Despite the situation remaining almost unchanged, the inflow increased in May on the eve of Eid-ul-Fitr as it does every year on the occasion.

In July-May of the fiscal year 2019-2020, the country’s remittance inflow still remained high against the inflow in the same period of the previous year mainly due to a surge in inflow in the first half of the current fiscal year, riding on a government-announced 2-per cent cash incentive against inward remittance.

In the 11 months of FY20, remittance inflow increased by 8.72 per cent to $16.36 billion from $15.05 billion in the same period of FY19.

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