Helping unemployed migrant workers abroad find decent jobs, improving the skill composition of new migrants, ensuring the competitiveness of the exchange rate, and ring fencing remittance transactions from the impact of political turmoil will help stem the decline in remittances which experiencing in Bangladesh.
But recently Bangladesh is facing the decreasing revenue from foreign sector. Bangladesh Bank (BB) data shows that country`s inward foreign remittance dropped sharply in the last couple of months.
There are four factors that can potentially account for the decline in remittances: the stock of Bangladeshi migrants abroad, earnings per migrant worker, their average propensity to save, and their average propensity to remit money home out of those savings.
The standard refrain appears to be that the flow of remittance has declined because the stock of Bangladeshi migrants abroad is not growing like it used to. This is because of two reasons. First, Bangladesh is failing to send more workers abroad to traditional markets and exploring new market. Second, the number of migrant workers returning to Bangladesh has also increased because the government could not resolve problems related to the legal status of Bangladeshi migrant labors in Saudi Arabia, United Arab Emirat and Kuwait through diplomatic channels. Unfortunately, there is no reliable time series on the annual number of migrant returning.
Average earnings may have declined because of increased unemployment and/or decreased wages of illegal migrants in GCC countries in particular as the authorities tightened enforcement of regulation against illegal migrants.
American election can be a matter of thinking for upcoming fall of remittance. It can be occur a huge impact on Bangladesh economy.
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Written by: Muminul H Chowdhury
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