FOREIGN REMITANCE INWARD

17
Foreign Remittance (Inward Remittance)

Transcript of FOREIGN REMITANCE INWARD

Foreign Remittance

(Inward Remittance)

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 (% )

Recommendation

Tourism sector

BRANDING

PROTECTING

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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Closing remarks

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.