Intern Report
Industry Overview
In its broadest sense remittances refer to cash or in kind transfers from one place to another. The main reason for the renewed attention is the growing volume of official financial remittances to low income countries and their potential contribution to the economic development of the receiving regions. According to estimates of the World Bank (2005) developing countries received 126 billion US$ in 2004 in official remittances. Since independence in 1971, Bangladesh has received more than $30 billion in grant aid and loan commitments from foreign donors, about $15 billion of which has been disbursed. Bangladesh has historically run a large trade deficit, financed largely through aid receipts and remittances from workers overseas. Foreign reserves dropped markedly in 1995 and 1996 but due to remarkable remittance growth in recent years, especially the large contributions made by the expatriate Sylheti community, had stabilized at around $3.1 billion. (or about 2.2-2.5 monthly import cover) in around beginning of 2006, by September 2006, the Forex reserves had grown to $3.6 billion. Foreign aid has seen a decline of 10% over the last few months but economists see this as a good sign for self-reliance.There has been 18% growth in exports over the last 9 months and remittance inflow has increased at a remarkable 25% rate. Growths in remittance and exports have contributed to an overall positive balance of payment (BoP) in the last fiscal year (FY 2005-06). During the last fiscal, growth in import was 12.05 percent or $1431 million whereas export had a growth of 21.63 percent or $1849 million. On the other hand, remittance inflow maintained the growth rate over 24.78 percent, touching $4.8 billion mark in the last fiscal mainly due to increase in skilled labour abroad and government’s efficient move against money laundering. Remittance inflow jumped 25 per cent to $4,861 million during the July-April period of the current fiscal, with
In its broadest sense remittances refer to cash or in kind transfers from one place to another. The main reason for the renewed attention is the growing volume of official financial remittances to low income countries and their potential contribution to the economic development of the receiving regions. According to estimates of the World Bank (2005) developing countries received 126 billion US$ in 2004 in official remittances. Since independence in 1971, Bangladesh has received more than $30 billion in grant aid and loan commitments from foreign donors, about $15 billion of which has been disbursed. Bangladesh has historically run a large trade deficit, financed largely through aid receipts and remittances from workers overseas. Foreign reserves dropped markedly in 1995 and 1996 but due to remarkable remittance growth in recent years, especially the large contributions made by the expatriate Sylheti community, had stabilized at around $3.1 billion. (or about 2.2-2.5 monthly import cover) in around beginning of 2006, by September 2006, the Forex reserves had grown to $3.6 billion. Foreign aid has seen a decline of 10% over the last few months but economists see this as a good sign for self-reliance.There has been 18% growth in exports over the last 9 months and remittance inflow has increased at a remarkable 25% rate. Growths in remittance and exports have contributed to an overall positive balance of payment (BoP) in the last fiscal year (FY 2005-06). During the last fiscal, growth in import was 12.05 percent or $1431 million whereas export had a growth of 21.63 percent or $1849 million. On the other hand, remittance inflow maintained the growth rate over 24.78 percent, touching $4.8 billion mark in the last fiscal mainly due to increase in skilled labour abroad and government’s efficient move against money laundering. Remittance inflow jumped 25 per cent to $4,861 million during the July-April period of the current fiscal, with