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Remittance inflow slows a bit

Star Business Report
Inward remittances fell 2.43 percent to $1.08 billion in March compared to a month ago, but the overall growth in the first ten months of the current fiscal year reached near 11 percent.
During the period, more than $1 billion was remitted from abroad by Bangladeshi migrant workers every month, except September and November, according to data from the central bank.
In March, remittances stood at $ 1.1 billion.
However, remittances increased by 10.41 percent to $10.61 billion in the first ten months of the current fiscal year.
The banking regulator projected that remittance earnings will be worth around $ 13 billion in the current fiscal year, which will have a positive impact on the country's
balance of payments, a Bangladesh Bank official said.
The official said a good flow of remittances has already made the foreign currency reserve and exchange rate stable in recent times. The exchange rate in the interbank foreign exchange market hovered around Tk 82 against the dollar last month, which was more than Tk 85 a month ago.
The BB official said multilateral donor agencies, including some analysts, apprehended that the foreign currency reserve would come down to $9 billion but still the reserve is more than $ 10 billion.
According to the central bank statistics, the forex reserve was $ 10.19 billion yesterday.
The BB official also said, as remittance inflow was good, the pressure on the current account balance eased to some extent despite a fall in foreign aid.
In the beginning of the fiscal year, the surplus in the current account balance was much less. But now the situation is improving gradually.
According to the BB statistics, the current account surplus was $681 million in nine months from July to March though the amount is lesser than that during the same
period last year.
During the same period last year, the current account surplus was $999 million.
An official of National Credit and Commerce Bank said the remittances not only fuelled the reserve, but also kept rural economy vibrant.
The official of the private bank said the relatives of the expatriates spend the remittances in the rural areas, contributing to the country's gross domestic product.
An official of Agrani Bank said, as oil prices are on the rise, the Gulf Cooperation Countries have increased construction and other economic activities, which in turn boosted demands formigrantworkers.
He also said some Arab states are now witnessing political stability after conflicts in the region.
The rebuilding activities following the prolonged unrest are leading to a revival of demand for Bangladeshi migrant workers in the Middle East countries.