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REMITTANCEAND ITSECONOMIC IMPACT ON
BANGLADESH
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REMITTANCE
Money sent by migrant workers from foreigncountries to their former homes.
it helps in balancing balance of payments,increasing foreign exchange reserves, enhancing
national savings and increasing velocity of money. second largest sector of foreign exchange earning
after the garments sector in Bangladesh.
contributing around 35% of export earning.
Bangladesh is the seventh largest economy ofremittance receiver in FY 2010-11.
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REMITTANCE SENDING SYSTEM
Two types of system
#Formal system
(western union, demand draft, traveler check,mobile remittance etc.)
#Informal system
(Hundi)
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TRENDS OF REITTANCE FLOW IN BANGLADESH
The receipts of remittances from Bangladeshi migrants
during FY 2010-11 has stood at around USD 11,650.30
million or Tk. 82,992.89crore that is 10.54 percent of
GDP.IN 2011-12 the remittance flow is 89,853.16crore taka
Even in recession all over the world Bangladesh still
has a strong flow of remittance.
Bangladesh has received highest remittance In January
that 1.5 billion USD.
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TRENDS OF REITTANCE FLOW IN BANGLADESH
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Country and Region wise Remittance F low in
Bangladesh
2011-2012
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ECONOMIC IMPACT
Remittance and GDP
#IN FY 2010-11of remittance as a percentage of GDP drops
down to 10.54.
# INFY 2011-2012 remittance as a percentage of GDP
drops down To 9.98
Remittance and Inflation#The growth rate of remittance induces that rate of inflation, if
the currency received as remittance is not used in capital goodsrather only used in consumption goods the inflation rate willrise vice versa.
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ECONOMIC IMPACT
Remittance and foreign Reserve.#reserve in FY 2011-12 might reach at USD 12.56 billion
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ECONOMIC IMPACT
Remittance and Exchange Rate.# sufficient flow of remittance helps to control the
exchange rate
Remittance and investment#Helps build up micro-enterprises to reduce poverty
#Help the poor people to make micro-investment
# Enhance economic development
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ECONOMIC IMPACT
Remittance and balance of payment
Trade deficit
Import is larger than export
Compensate the deficit
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LABOR MIGRATION AND FLOW OFREMITTANCE
In FY 2010-11, a total of 0.45 million people have migrated
from the country Drop down due to political unrest in middle east and economic
recession
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PROBLEMS OF REMITTANCE
Inequality
Regional disparities
Increased demand for imported luxury goods
Misuse of remittance
Exploitation by the dalals
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RECOMMENDATION
Provide necessary information to the people aboutthe job opportunity in different foreign countries.
Establish information center
Provide necessary logistic support
Minimize the cost of sending remittance
Influence of the middlemen and their interest shouldbe controlled
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RECOMMENDATION
Remittance sending procedure should be developedto make it secured, quick and effective
remittance sending process should be liberalized sothat irregular emigrants can also send remittance
through regular channels
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FINDINGS
Remittance is the second largest sector of foreign exchangeearning after garments sector
Remittance earning is increasing day by day
There is high probability of supremacy of yearly growth rate ofremittance over that of RMG sector for fiscal years 2015 to2020.
Remittances of Bangladesh (million US$) have negligiblepositive impacts on foreign reserves.
Remittance helps in reducing dependence on foreign assistance
Remittance increases national savings and national inves
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SLIDE SHOW COMPLETED
SLIDE SHOW COMPLETED
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