Remittance rise despite Covid-19 emblematic of people’s hard work, govt efforts: finance minister

[DalalErMaNodi]

Finance Minister AHM Mustafa Kamal

Urging the World Bank for its continued support, Finance Minister AHM Mustafa Kamal today said despite predictions of a decrease in remittance worldwide, Bangladesh had received the highest ever payments in the country's history.

The USD 18.2 billion in remittance in 2019-2020 was the highest ever and it was achieved due to the leadership of Prime Minister Sheikh Hasina and the hard-working citizens of the country, both at home and abroad, he said.

Considering Covid-19 impacts, World Bank and others had feared a fall in remittance, but this was allayed as inward remittances in Bangladesh have shown an upward trend, Mustafa Kamal said in a statement released by the finance ministry.

During the first quarter of fiscal year 2020-2021, inward remittances were recorded at 6.71 billion USD -- 49% higher than the same quarter of the previous year, he said.

The minister pointed out the 2% direct cash incentive policy as playing a major role in the increase.


Mustafa Kamal also said that although the outbreak of Covid-19 led to the return of 1,95,698 expats by October 15, this was not worrying considering that in the same period "2,84,000 expats had returned abroad… which is 26% higher than the same period last year."

The finance minister also pointed out several government initiatives which were undertaken for migrant workers. These included social protection programmes, such as USD 1.3 million worth food stamp programme for returnee expats during the coronavirus-induced closures in April and May.

He also highlighted the USD 83 million budgeted rehabilitation programmes for those who lost their jobs abroad.

"In the current fiscal year the government allocated BDT 2,000 crore, equivalent to USD 240 million, for a specific social protection targeting the future potential expat workers. Employment generation programmes will be implemented through four specialised banks. The objective of the programme is to facilitate the potential workers to get overseas job smoothly in a faster way for overcoming the COVID-19 shock," he said in the statement.




Source

 

[Wikki019]

what is 2% cash incentive?

 

[DalalErMaNodi]

what is 2% cash incentive?

Since Q3 last year, Bangladesh Bank has instructed all Banks to add 2% of the total value of the remittances to the account that is being remitted.



For a maximum of 500,000 taka, you don't need to show any physical documents, bank will add an extra 2% to the money you sent.




This has boosted remittances and expatriates are remitting more money now than ever, even amid pandemic.



Think of it as bank giving you an interest on your money, but only that it's once per transaction and a nice & chunky 2%.

 

[Wikki019]

Since Q3 last year, Bangladesh Bank has instructed all Banks to add 2% of the total value of the remittances to the account that is being remitted.



For a maximum of 500,000 taka, you don't need to show any physical documents, bank will add an extra 2% to the money you sent.




This has boosted remittances and expatriates are remitting more money now than ever, even amid pandemic.



Think of it as bank giving you an interest on your money, but only that it's once per transaction and a nice & chunky 2%.

its an awesome scheme, hope GOP will learn something from it.

 

[DalalErMaNodi]

its an awesome scheme, hope GOP will learn something from it.

Yeah, it certainly is an interesting scheme, I hope the government keeps its on for the next couple financial years as we recover from the Covid shock.



Many expats I know, have withdrawn their little 'rainy day' funds and sent it back home, they all want to make maximum use of the incentive.