Bangladesh remittances jump 16.5 pct in 2012

DHAKA Sat Jan 5, 2013 4:40pm IST

DHAKA Jan 5 (Reuters) - Bangladesh received a record high $14.17 billion in remittances from citizens working overseas in 2012, 16.5 percent up on 2011, despite a cooling global economy, a senior central bank official said on Saturday.

Remittances brought in $12.165 billion in 2011.

"The country received almost 17 percent more money from the expatriates despite economic slowdown both in the U.S.A. and countries in the European Union," said Hassan Zaman, Chief Economist of the Bangladesh Bank.

"Undoubtedly it is a cushion (for) much needed foreign exchange reserves," he told Reuters.

Overseas recruitment in 2012 grew 22 percent as around 691,402 job seekers went abroad in 2012, up from 567,505 in 2011, according to the central bank.

It has asked all the 15 commercial banks who have exchange units outside the country to make sure their currency rates encourage expatriates to use legal methods of sending money home, Zaman said.

Remittances from about nine million citizens working abroad are critical for the impoverished South Asian nation, which otherwise depends heavily on garment exports which account for 80 percent of its $25 billion a year export earnings.

Remittances helped boost the country's foreign exchange reserves to $12.75 billion in December 2012, from $9.63 billion in December 2011. (Reporting by Serajul Quadir; Editing by Ruth Pitchford)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Canada Shooting

Canada Shooting

Attack on parliament, killing of soldier stun Canada's capital.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage