Md Abdul Jabbar
Remittance market represents the total funds sent by individuals who are residents abroad to recipients through both formal (i.e., banking system) and informal i.e., "Hundi" channels. If Bangladesh achieves the goal of incentivising increasing use of the informal sector for sending remittances, the flows through the banking system would be $4.0 billion greater -- at around $10.0 billion within three years. Reducing transaction fees over three to five years to the IADB average target of 5.0%, which is not unreasonable given the lower starting point, would increase net formal sector remittances by more than $500 million per year.
Statistics indicates a remittance flow of about $6.50 billion in 2006, fully $3.70 billion of which came from the KSA, the UAE and the UK. These numbers are mere compilations of returns from the commercial banks of their remittance activity. The majority of the Bangladesh diaspora consist of unskilled labourers as is the ease within the Latin American countries, where the remitting community abroad consists overwhelmingly of poorly educated unskilled workers in low wage jobs in the US and Europe.[Read more]
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