Making remittance inflows safer

Dr. Atiur Rahman :
Governor, Bangladesh Bank
According to the World Bank, in 2013 Bangladesh ranked 7th position in the list of remittance recipient country in the World. In FY2014, remittance accounts for 66% of foreign reserve while it is almost 9 times of the current account balance in the same fiscal year. As per govt statistics, nearly 2.35 million workers have migrated in last 5 years. In 2014 the inflow of remittance was 14.94 billion. This demonstrates the inherent strength of our external sector and hence that of our country. Obviously, we must give credit to NRBs for attaining this strength and external stability. Stability of exchange rate is an incentive.
There has been a gradual change in the share of remittance flows by regions shifting the focus from Middle East to the East Asia, Europe and the North America. For instance Malaysia has become fourth largest remittance source country for Bangladesh. Remittance inflow has always been gender biased representing the woman a little. However, there is a notable change in this tradition. Beside the traditional flows of male workers going abroad, the numbers of female expatriates are growing with significant pace. This trend added a new dimension in the Non-Resident Bangladeshi portfolio.
The introduction of mobile banking and involvement of MFIs in inward remittances reduce the necessity of sending money through informal channel. Banks are now using the branch networks of the MFIs and Post Offices as the sub agent for remittance distribution. Remittances are also distributed through Agent Banking like Singer Bangladesh Limited outlets. All these payment facilities have virtually eliminated the informal remittance inflows reducing the risk of counterfeit.
Bangladesh Bank has established a separate department titled ‘Financial Integrity and Customer Interest Protection Department’ to handle any complaints and suggestions by the customers or any stakeholders at home and abroad to ensure the smooth and hassle free services. There is a hotline 16236 to address customers’ hassle if any. I can assure that as an NRB your complaint will be dealt with highest priority. At the moment no bank can take more than two days in distributing the remittance to the designated beneficiaries.
There is always a high demand for skilled workers abroad. In contrast, 55% of our migrant workers are unskilled and their wage rate remains low, which has a downward impact on the earnings of the migrant. There is a considerable scope to improve their earnings if they can be further trained in different vocational training centres to develop and upgrade their skills.
NRB remittance is very useful for Bangladesh development. It has kept Bangladesh’s economy strong when others are facing financial crisis. Most remarkable of contributions of NRB’s is the investing of their hard-earned money for the development of our country’s rural economy in the form of SMEs and investment portfolio as a whole.
It is very praiseworthy that through this conference series, discussions will be held on positive achievements of Bangladesh and its ample potentials particularly with regards to investment remittance. Networking among the non-resident Bangladeshis and others will open a new era of understanding and opportunities.