Remittances to Bangladesh are money transfers ( remittances) sent by the

Bangladeshi diaspora The Bangladeshi diaspora ( bn, প্রবাসী বাংলাদেশী) are people of Bangladeshi birth or descent who live outside of Bangladesh. First-generation migrants may have moved abroad from Bangladesh for various reasons in ...

Bangladesh Bangladesh (}, ), officially the People's Republic of Bangladesh, is a country in South Asia. It is the eighth-most populous country in the world, with a population exceeding 165 million people in an area of . Bangladesh is among the mos ...

. According to the

World Bank The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...

, Bangladesh is the 7th highest recipient of remittance in the world with almost $22.1 billion in 2021 and was the third highest recipient of remittance in

South Asia South Asia is the southern subregion of Asia, which is defined in both geographical Geography (from Greek: , ''geographia''. Combination of Greek words ‘Geo’ (The Earth) and ‘Graphien’ (to describe), literally "earth descr ...

. A survey on the remittance usage conducted by the Bangladesh Bureau of Statistics in 2013 showed that 32.81% and 32.82% of the remittances are used for food and non-food expenditures. 18.84% of remittances were used for durable and other expenses including 17.39% utilised for the purchase of land. In regards to investment and savings, the Bangladesh Bureau of Statistics revealed that 33.45% of remittances goes to investment and 13.74% of remittances goes to savings.

History

In 1974, Wage Earners' Scheme was initiated in order to help the Non-resident Bangladeshis remit their earnings home through legal channels. The scheme soon became popular among the Bangladeshi community working abroad. Around $11.8 million was remitted to Bangladesh in the fiscal year of 1974–75. The amount rose to over $350 million in the fiscal year of 1980-81 and to over $750 million in the fiscal year of 1990–91.

Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the A ...

has been the largest source of foreign remittance to Bangladesh o
send money to Bangladesh

UAE The United Arab Emirates (UAE; ar, اَلْإِمَارَات الْعَرَبِيَة الْمُتَحِدَة ), or simply the Emirates ( ar, الِْإمَارَات ), is a country in Western Asia (The Middle East). It is located at th ...

Qatar Qatar (, ; ar, قطر, Qaṭar ; local vernacular pronunciation: ), officially the State of Qatar,) is a country in Western Asia. It occupies the Qatar Peninsula on the northeastern coast of the Arabian Peninsula in the Middle East; it ...

Oman Oman ( ; ar, عُمَان ' ), officially the Sultanate of Oman ( ar, سلْطنةُ عُمان ), is an Arabian country located in southwestern Asia. It is situated on the southeastern coast of the Arabian Peninsula, and spans the mouth of ...

Bahrain Bahrain ( ; ; ar, البحرين, al-Bahrayn, locally ), officially the Kingdom of Bahrain, ' is an island country in Western Asia. It is situated on the Persian Gulf, and comprises a small archipelago made up of 50 natural islands and an ...

Kuwait Kuwait (; ar, الكويت ', or ), officially the State of Kuwait ( ar, دولة الكويت '), is a country in Western Asia. It is situated in the northern edge of Eastern Arabia at the tip of the Persian Gulf, bordering Iraq to the nort ...

Libya Libya (; ar, ليبيا, Lībiyā), officially the State of Libya ( ar, دولة ليبيا, Dawlat Lībiyā), is a country in the Maghreb region in North Africa. It is bordered by the Mediterranean Sea to the north, Egypt to the east, Suda ...

Iraq Iraq,; ku, عێراق, translit=Êraq officially the Republic of Iraq, '; ku, کۆماری عێراق, translit=Komarî Êraq is a country in Western Asia. It is bordered by Turkey to the north, Iran to the east, the Persian Gulf and K ...

Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bor ...

Malaysia Malaysia ( ; ) is a country in Southeast Asia. The federation, federal constitutional monarchy consists of States and federal territories of Malaysia, thirteen states and three federal territories, separated by the South China Sea into two r ...

, the US and the UK are also major sources of foreign remittance.Bangladesh Economic Update: Remittance, 8 September 2011, Unnayan Onneshan, Dhaka, p. 9. The

Bangladesh Bank Bangladesh Bank ( bn, বাংলাদেশ ব্যাংক) is the central bank of Bangladesh and is a member of the Asian Clearing Union. It is fully owned by the Government of Bangladesh. The bank is active in developing green bankin ...

annually names top 10 diaspora Bangladeshis who have made the highest remittances and in recognition of their contribution to the economy through remittance. One of these has been Mahtabur Rahman chairman of Al Haramain Hospital and managing director of Al Haramain Perfumes who has been listed in 2013, 2014 and 2015.

Remittances to Bangladesh by fiscal year and country

Remittances to Bangladesh by fiscal year

Remittance sending system

Formal system

Remittance is sent formally through various ways such as demand draft, traveler's check, telegraphic transfer, postal order, direct transfer, Automatic Teller Machine. etc.

System

Hundi A hundi or hundee is a financial instrument that developed in Medieval India for use in trade and credit transactions. Hundis are used as a form of Remittances to India, remittance instrument to money order, transfer money from place to place, as ...

or money carrier system is prevalent as informal process of remittance sending in most cases. The most popular reasons behind the preference towards Hundi system is the absence of any transaction charges, its fast delivery and the opportunity to maintain confidentiality.

References

{{reflist Economy of Bangladesh Remittances Bangladeshi diaspora Finance in Bangladesh