Migrant workers last month sent home $1.48 billion, the highest inflow of remittance in a single month in Bangladesh’s history.
The record flow of remittance could be attributed to celebrations of Eid-ul-Fitr in the last week of July, the country’s biggest festival.
The amount is 15.19 percent higher than in the previous month and 19.67 percent from July last year, the central bank said in a statement yesterday.
The record flow of remittance in the first month of the new fiscal year could help policy-makers breathe a sigh of relief, after negative growth in the last fiscal year.
Inward remittance fell 1.6 percent in fiscal 2013-14, the first decrease in 13 years.
The fall in remittances stemmed from a combination of factors which includes fewer migrants finding jobs in the Gulf countries, more migrants returning home due to departures and deportations, and the appreciation of the taka against the dollar.
Only 4.5 lakh migrants managed oversees jobs in 2013, down by more than 33 percent from 2012, according to the Refugee and Migratory Movements Research Unit of Dhaka University.
The decline is accompanied by a large number of returning migrants. However, official statistics on the returnees is not available.
Remittance is a significant source of income for the economy, and is the second largest source of dollars after exports.
Besides, many families in rural areas completely depend on the money sent by their dear ones toiling abroad.
According to a World Bank study, remittances augment consumption and investment, and thereby have an important role in stimulating the economy. It helps the economy maintain a stable balance of payments and current accounts.
Inward remittances have helped Bangladesh stimulate economic growth for more than a decade.
Last year, remittance receipts stood at $13.83 billion, accounting for one-tenth of the country’s gross domestic product, according to Bangladesh Bank statistics.
Since August 2011, the country has received over a billion US dollar in remittance every month.
July’s figure means the total remittance for the first seven months stands at $8.93 billion, up 7.71 percent year-on-year.