Economy
Sharp Rise in Remittance Inflows Preceding Eid Celebrations
As the auspicious occasion of Eid-ul-Adha draws near, the country has witnessed a remarkable growth in remittance inflows, with expatriates sending a staggering $1.79 billion during the last 23 days of June.
According to data released by the Bangladesh Bank, remitters had transferred $1.69 billion in May and $1.68 billion in April, indicating a consistent upward trend. Notably, from June 1 to June 23, the highest remittance of $291 million was received through Islami Bank Bangladesh, followed by state-owned Agrani Bank, which channeled $115 million. The third-highest amount, standing at $114 million, was brought home by the private commercial lender Premier Bank.
This surge in remittance inflows highlights the deep-rooted connection between migrants and their home country, as well as the significance of Eid-ul-Adha as a time for familial celebration and sharing joy. The substantial increase in remittances showcases the dedication and commitment of expatriates toward ensuring their families and loved ones can partake in the festivities and experience financial support during this joyous period.
The influx of remittances is expected to have a positive impact on the country’s economy, stimulating consumption and contributing to overall economic growth. The funds received through remittances play a vital role in improving the living standards of families back home, facilitating investments in education, healthcare, and various other sectors.
The banking sector, particularly Islami Bank Bangladesh, Agrani Bank, and Premier Bank, has played a crucial role in facilitating these remittance transactions efficiently and securely. The consistent growth in remittance inflows highlights the trust and confidence placed by expatriates in these banks, recognizing their reliability and customer-oriented services.
As Eid-ul-Adha approaches, the nation eagerly anticipates the positive effects of these remittance inflows, fostering a sense of unity, prosperity, and happiness among families across the country. The remittance surge serves as a testament to the enduring bonds between migrants and their homeland, underscoring the crucial role they play in contributing to the economic well-being of their families and the nation as a whole.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
