Remittance
Remittance refers to the transfer of money from one place to another, typically from a person working abroad to their home country. It's often used to support family members or for investment in the home country's economy.
Remittance is a vital part of many economies, especially in developing countries where it can contribute significantly to GDP. It is usually done through money transfer services or banks and plays a crucial role in improving the livelihoods of families by providing financial support from relatives working abroad.
Most money transfers are now done electronically. You can do this with the help of a money transfer service or a bank's electronic payment system. With this method, the person who sends the money pays a fee for the transfer. Since digital transfers usually take less than ten minutes and save time, this is often the most popular way to send money abroad.
People who live in small, developing countries with slow economic growth depend a lot on remittances because family members who work abroad send them a big chunk of their money this way. When a natural disaster happens, money sent home from abroad is very important because it helps raise money for relief efforts.
These things greatly improve living standards in less developed countries with slow economic growth. With these remittances, people in less developed countries can open bank accounts, which is good for economic growth.
Recognizing Remittances
Most remittances come from people who work abroad and send money to their families back home. People usually send remittances to Bangladesh through both the formal and informal channels. The most common way to send money abroad is through an electronic payment system at a bank or a money transfer private application service. Most of the time, the people who use these services pay for them. Transfers can get where they need to go in as little as ten minutes. However, there are concerns that people sent significant international remittances through informal channels under Hundi ( Hundi is a way of money transaction outside the conventional banking system. It can also be called an informal document of commercial exchange and transaction. Through which money is transacted between two parties or individuals.) It is an informal way of money transfer from one country to another which is illegal in Bangladesh, and it works outside the conventional banking system.
Remittances are becoming more and more important to the businesses of small and developing countries. They want to help fight poverty worldwide and raise living standards in countries with low incomes. They also help with disaster relief and often go above and beyond what official development aid does (ODA).
Since the late 1990s, remittances have been more important than development aid; in some cases, they make up a big part of a country's GDP (GDP).
"Remittance flows to Bangladesh are projected to remain at $23billion in 2024," the World Bank report said. According to data from the Bureau of Manpower, Employment and Training, the country has sent a staggering 12.46 lakh workers abroad until 11 December 2023.
Link:- https://www.tbsnews.net/economy/banking/remittance-bangladesh-remain-flat-23b-2024-world-bank-760162
Last 9 months remittance in Bangladesh Report by Bangladesh Bank.
| Year/Months | Remittances | ||
| 2023-2024 | In million US dollar | In billion Taka | |
| March, 2024 | 1996.85 | 219.65 | |
| February, 2024 | 2164.56 | 238.10 | |
| January, 2024 | 2113.15 | 232.45 | |
| December, 2023 | 1991.26 | 219.34 | |
| November, 2023 | 1930.04 | 214.00 | |
| October, 2023 | 1971.43 | 217.82 | |
| September, 2023 | 1334.35 | 146.74 | |
| August, 2023 | 1599.45 | 175.07 | |
| July, 2023 | 1973.15 | 214.59 | |
Report link:- https://www.bb.org.bd/en/index.php/econdata/wageremitance