FOREIGN REMITANCE INWARD
Transcript of FOREIGN REMITANCE INWARD
Course Title: Foreign Exchange Management
Course Code: BNKG- 4801
Presented ByGroup
Major finance
Presented To MD. ZAHANGIR ALAM
Assistant Professor of Finance(DBA,IIUC-DC)
Tanjina aktherID:B101893
foreign remittance, Factors affecting foreign remittance
Tamanna yasminID:B101899
Impact of changing exchange rate of foreign remittance.
Sabrina sayontyID:B101900
Statistics of foreign remittance received in last 10 years, Comparing the statistical data
Kazi sajeda khatunID:B101907
Recommendation (what can Govt and other participants of foreign exchange like- tourist, exporter and importer do)
Sadia tabassumID:B101885
Closing remarks (impact of foreign remittance in our economy)
Presentation Details
Submission: 02/10/13
foreign remittance The purchase and sale of freely convertible foreign currencies as admissible under Exchange Control Regulations of the country'. Foreign Outward Remittance
Foreign Inward Remittance
When sender uses a bank or foreign exchange company to send money to foreign country to established remittance relationships with currency houses and banks in other countries to better facilitate the flow of remittances into the country.
The receiving country’s bank receives the money that has been sent from the sending person in the country in which the money has been earned.
Factors affecting foreign remittance
Wage Rate
Interbank Exchange Rate
Policy Change
Inflation rate Recession
Income Level
Number of Migrants
Impact of changing exchange rate of foreign remittance
Impact on GNP
Impact on IMPORT
Impact on CONSUMPTION
Impact on INVESTMENT
Statistics of foreign remittance received
in last 10 yearsYear/Month
(Fiscal year ended in June
30)
RemittancesIn million
(US dollar $)
(In million Taka ৳)
Growth rate (%)
2012-2013 14461.14 1156460.78 0.12
2011-2012 12843.43 1018827.79 0.102010-2011 11650.32 829928.90 0.06
2009-2010 10987.40 760109.59 0.13
2008-2009 9689.26 666758.50 0.22
2007-2008 7914.78 542951.40 0.32
2006-2007 5998.47 412985.29 0.25
2005-2006 4802.41 322756.80 0.25
2004-2005 3848.29 236469.70 0.14
2003-2004 3371.97 198698.00 0.10
Comparing the statistical data
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Rem ittance G row th Rate (% )
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
year
grow
th ra
te
Rem ittanceGrow thRate (% )
GovernmentRemittance of dividends on portfolio investment by non residents through stock exchange in Bangladesh.
Extension of term loans by banks on normal banking considerations to foreign firms operating in Bangladesh
Portfolio investment by non residents including foreign enterprises in shares and securities through stock exchanges in Bangladesh.
Issuance of shares to non residents against investment for settings up industries in Bangladesh.
Remittance of dividends on portfolio investment by non residents through stock exchange in Bangladesh.
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Exporter & Importer
Bangladesh’s economy has achieved and average growth of over 6 percent over the past five year primarily due to the healthy flow of remittance and rising exports. Extension of working
capital the foreign currency reserve has increased two and a half times, again due to rising exports and remittance flow.
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Contribution in our national economy
Payment of different foreign debt & donation from the remittance income
Reduce dependency on foreign aid.
Improve the balance of payment position of Bangladesh.
Contribution to alleviate the poverty
Lifting-up the GDP
Contributes to the expansion of financial market activities
Impact of Foreign Remittance In the Economy of Bangladesh
Remittance income makes more strong local currency (Bangladesh) against US dollar. Remittance income is positively the socioeconomic condition of migrant families.
Used for social welfare
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Remittance is one of those important instruments, which helps to solve our problem by strengthening the economy
Migration and consequent remittance is mainly related with employment and earning of foreign currency.
It also helps to increase foreign reserves, national savings and investments.