JAMIL MAHMUD

Remittance inflow fell in 11 months of the current fiscal year mainly because a large number of migrants switched to informal channels like hundi from formal ones for sending money, say experts.

Bangladesh received $19.19 billion in remittance from July 2021 to May 2022, which was $22.83 billion during the same period in fiscal 2020-21 -- a drop by $3.64 billion, shows Bangladesh Bank data.

Experts observe that many migrants are preferring informal channels as hundi activities returned to normalcy following improvement in Covid situation. Besides, a significant gap between the official exchange rate of US dollar and that in the kerb market is also a key reason.

They also pointed out that fiscal 2020-21 saw a boost in inward remittance as many returnee migrants, who lost jobs due to the pandemic, brought home their savings.

A report of Refugee and Migratory Movements Research Unit said 4.08 lakh migrant workers returned home from April 1 to December 31, 2020.

According to BB data, the country received $18.2 billion in remittance in fiscal 2019-2020, $16.4 billion in fiscal 2018-2019 and $14.9 billion in fiscal 2017-2018.

The country-wise data available for 10 months till April of FY21-22 shows inward remittance saw the biggest decline from Saudi Arabia hosting more than 2.2 million Bangladeshis.

Remittance from Saudi Arabia, the largest labour market for Bangladesh, dropped to $3.8 billion in 10 months of FY21-22 from $4.7 billion during the same period in FY20-21, shows data of the central bank and Bureau of Manpower Employment and Training (BMET).

Bangladesh saw the second-biggest fall in remittance from Malaysia with remitters sending home $849.86 million in 10 months of FY21-22 compared to 1.7 billion in FY20-21.

During the period, remittance inflow from six other countries -- the UAE, Oman, Singapore, Kuwait, Qatar and the United Kingdom -- also dropped considerably.

Talking to this newspaper, several economists said banks are losing fast the advantage they enjoyed at the height of the pandemic when the informal channels mostly remained closed. But as the Covid situation improved, remitters switched to informal channels again.