State of the Bangladesh Economy in FY2023-24 (First Reading)
Independent Review of
RBD
Bangladesh's Development
Migration and remittance flows
☐ Evidently, the significantly high difference between Bangladesh Bank-determined rates and the
rates offered in the informal channels has created incentives for a large move from formal to
informal channels. Trend suggests that remittance flows are quite sensitive to the exchange rate.
This is also reinforced by the fact that when, in October 2023, an additional 2.5% incentive for
remittances was introduced, there was an immediate rise in remittance flows through formal
channels during the months of October and November of 2023.
➤ The hundi/hawala syndicate must be broken.
➤ Sending of remittances through formal channels must be facilitated (through the
introduction of credit cards for visiting workers, a savings scheme, facilitation of the
transfer of remitted money, reduction of administrative hassles, speedy transfer, lower cost
of sending money, recognition of services of remitters).
CPD (2023): State of the Bangladesh Economy in FY2023-24 (First Reading)
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