Presentation On

Purpose of Sending Foreign

Remittance to Bangladesh
Presented by
Faria Risat Faruquee
ID: 51532006
Batch: 32nd
 FOREIGN REMITTANCE

• Foreign Remittance means sending of money from a worker who is

migrated to another country to their relatives or other necessary people in
their home countries
• Bangladesh is now one of the largest recipients of remittance
• Foreign remittances accomplishing a promising balance of expenditures and
over and above generating a new possessions base for the country.
WAYS OF RECEIVING FOREIGN REMITTANCE

• Telegraphic Transfer
• Mail Transfer
• Demand Draft
• Travelers Cheques
• Electronic Fund Transfer
• Online Remittances
 TYPES OF FOREIGN REMITTANCE
• Inward Remittance: Remittance comes from overseas countries to our country is
called inward remittance.
Sources of Inward Foreign Remittance:
I. Export Proceeds
II. Remittances by Expatriate Bangladesh nationals working abroad under Wage
Earners Remittances.
III. Commissions / Fees etc. earned by local business people.
IV. Foreign loans and grants, donation and gift.
V. Collection and Purchase of bills, currency notes, traveler’s cheques, drafts etc.
 TYPES OF FOREIGN REMITTANCE
• Outward Remittance: Remittance from our country to overseas countries is called
outward foreign remittance.
Outward Foreign Remittances Comprise-
I. Payment of import liabilities
II. Private Remittance
III. Foreign Travel
IV. Commercial Remittances
V. All other payments sent abroad in foreign currency
 SIGNIFICANCE OF REMITTANCE IN
BANGLADESH ECONOMY
• 11% of the total GDP of Bangladesh in 2017 is contributed by Remittance.
• Remittance wages help the administration of Bangladesh to diminish
reliance on extraneous assistance.
• Remittance earnings is certainly the socio-economic situation of migrant
families.
• Remittance income makes resident currency (Bangladesh) more powerful
against US dollar
 FOREIGN REMITTANCE PROCESS

• To relocate the funds from one country to another country goes through a
process which is known as remitting process.
• Bangladeshi emigrants are transporting the external remittances to their
native recipients through the Nostro account of the local bank.
• If the corresponding native bank has no branch where the recipient upholds
his account then the native bank has to take assistance of a third bank who
has branch there.
 CHANNELS FOR SENDING FOREIGN
REMITTANCES

• Formal Channels: Sending funds from one country to another country

through authorized networks, i.e. banking channel, post office and other
secluded service channels.
• Example: Western Union, Moneygram etc.
• Informal Channels: Reserve relocation from one country to another country
through hand or over telephone in an unauthorized channel like as “Hundy”.
 CHANNELS FOR SENDING FOREIGN
REMITTANCES
The usage of informal channel are developed because of –
• Trade in weapons and bullets.
• Drug trading.
• Financial terrorist activities.
• Elusion of exchange guidelines/ mechanism.
• Avoidance of taxation etc.
COUNTRY WISE REMITTANCE INFLOWS
(FY-2017)
Name of the Country Percentage of Remittance
Kingdom of Saudi Arabia (KSA) 17.46%
United Arab Emirates (UAE) 15.18%
United States of America (USA) 14.19%
Malaysia 7.05%
Kuwait 5.37%
Oman 6.78%
United Kingdom (UK) 7.61%
Others 26.36%
COUNTRYWISE REMITTANCE INFLOWS IN
PERCENTAGE OF FISCAL YEAR 2017

KSA
Others 18%
26% COUNTRY
WISE
UAE
15%
REMITTANCE
UK
INFLOWS
8%
(FY-2017)
Oman
7% USA
Kuwait 14%
5% Malaysia
7%
INWARD REMITTANCE DATA OF FISCAL YEAR
2011-2017
Fiscal Year Inward Remittance in $ Billions
2011 12.17
2012 14.16
2013 13.83
2014 14.94
2015 15.32
2016 13.61
2017 13.53
18

16 14.94 15.32
14.16 13.83 13.61 13.53
14
12.17
12

10 INWARD
8 REMITTANCE
6
IN $ BILLIONS
4

0
2011 2012 2013 2014 2015 2016 2017
 STEPS TAKEN FOR REMITTANCE PROCESS
IMPROVEMENT

• Government along with secluded division has started numerous policies to

make allowance transmission stress-free and trouble free.
• The Nationalized Commercial Banks (NCBs) have some foreign
branches/remittance extensions for relocating remittances
• Nationalized and private commercial banks have taken several promotional
tactics to relocate remittances
THANK
YOU