The floods have brought positive impact at least on one sector. With expatriates sending extra amount to their relatives affected by the deluge, remittance saw an 11 percent growth in the first month of the new fiscal year.

The country received $287.7 million in remittance in July this year, which was $258.8 million in the same month of last year. The month-on-month growth was only 3.2 percent in July 2003, compared with the previous year's figure.

Banking sources said the remittance flow may witness a further boost in coming months as expatriate workers will be sending more money to their relatives to overcome the damages caused by the devastating flood.

Finance ministry sources said the government has taken some supportive measures targeting substantial increase in remittance to face the challenges of post-MFA (Multi-fibre arrangement) era starting from January 2005.

Finance and Planning Minister M Saifur Rahman is now in Singapore, a major source of remittance, to revamp the Agrani Bank

branch there. He will also sit with Bangladeshi workers community and encourage them to send money through the bank.

Sources said the government is very much careful about the balance of payment status in the quota-free era as export and employment may be affected in the changing scenario.

In line with government's strategy to counter the challenges, the government has already opened several branches of nationalised commercial banks in Rome, London, New York and Riyadh to encourage people to send money through official channels.

These steps have been taken to consolidate the foreign exchange reserve and improve balance of payment situation, the sources added.

The government also provides some facilities to the remitters like allotment of Rajuk (government) plots, CIP (commercially important person) status and others facilities which sources said also contribute to more remittance through legal channel.

According to Bangladesh Bank, foreign exchange reserve stood at $2.63 billion yesterday. The reserve

will jump to $2.9 billion within next few weeks when World Bank will release $200 million as Development Support Credit-2 and International Monetary Fund another $100 million for education sector.

In the last fiscal year, the country received the highest volume of remittance amounting to $3.37 billion, though the annual growth was not handsome compared with previous years' growth figures.

In FY2003-04, the growth was 10 percent, which were 22.39 percent and 32.89 percent in 2002-03 and 2001-02 respectively. The amount of remittance was $3.06 billion in FY2002-03 and $2.5 billion in 200102.

On average, Bangladesh receives $250 million remittance per month but during Eid festival the flow usually jumps. During last Eid-ul-Fitr in October last year, Bangladeshi expatriates remitted $308.18 million while the country received $357.06 million remittance in January this year after Eid-ul-Azha.