Dhaka, Bangladesh (BBN)- Bangladesh’s overall inward remittance may reach US$14.50 billion by the end of the current fiscal year (FY) 2012-13, following the central bank's various initiatives to increase its flow.
“We expect that the inflow of remittance may grow by 12 percent during the FY 13,” a senior official of the Bangladesh Bank (BB), the country’s central bank, said on Sunday.
The BB official estimated the figure on the basis of remittance flow in the just concluded fiscal year that registered around 11 percent increase over the corresponding period of the previous fiscal.
The country’s overall projected inflow of remittance may hit $14.483 billion by the end of this fiscal from $12.932 billion of the previous fiscal, according to the latest monetary policy statement, issued by the BB on July 18 last.
The central banker also said the government as well as the central bank has taken different measures aiming to increase the flow of inward remittance.
As part of the moves, the central bank has relaxed rules allowing maximum inward remittance amounting to $5,000 instead of $2,000 earlier without declaration on prescribed form, officially known as Form C, to facilitate inflow of remittance
The central bank issued a circular in this connection Sunday and asked the commercial banks to follow the latest instructions relating to declaration on inward remittance.
“It has now been decided that declaration on Form C shall not be required for inward remittance up to $5,000 or equivalent other foreign currencies,” the BB said in the circular.
“We hope that such relaxation on declaration of inward remittance will able to bring a positive impact on the overall inflow of remittance,” the BB official said.
The Ministry of Finance has already relaxed provisions on the three bonds allowing non-resident Bangladeshis (NRBs) to buy these without attestation by any Bangladesh embassy.
The bonds are: US Dollar Premium Bond, US Dollar Investment Bond and Wage Earner Development Bond.
Bangladeshi nationals working abroad may purchase the Wage Earner Development Bonds in the foreign exchange.
"We're working continuously to increase the remittance inflow from across the world," the BB official said, adding that the central bank has, so far, given approval to establish around 60 exchange houses and set up 900 drawing arrangements abroad to expedite the inward remittance flow.
The country received $514 million remittance between July 1 and July13 last, the BB data showed.
The central banker expected that remittance from expatriate Bangladeshis exceeded $1.10 billion by the end of July this year.
The central bank of Bangladesh earlier took a series of measures to encourage expatriate Bangladeshis to send their money through formal banking channel instead of the illegal 'hundi' system to boost the country's foreign exchange reserve.
BBN/SSR/AD-22July12-11:50am (BST)
