Worker remittances up 28% YoY in August to $ 664 m

Workers’ remittances in August have jumped by 28% from a year earlier to $ 664 million apart from increasing for the third consecutive month. 

Central Bank described the August growth as “notable”.

It said this increase helped limit the cumulative decline in workers’ remittances to 1.5% to $ 4.34 billion during the period from January to August, in comparison to the corresponding period of 2019. 

In July remittances hit a record high of $ 702 million, up 12% from a year earlier. In June remittances amounted to $ 572 million, up 6.7% year on year but was down 8% in the first half as against a year earlier.

In 2019 work remittances were down by 15%.

In its external trade data released on Friday the Central Bank also said marginal net outflow of foreign investment amounting to $ 7 million was recorded from the rupee denominated Government securities market in August, resulting in a cumulative net outflow of $ 521 million during the period from January – August. 

The total outstanding exposure of foreign investment in the rupee denominated Government securities market remained relatively negligible at $ 63 million by end-August.

The bank also said there were net outflows of $ 44 million from the secondary market of the CSE in August. No primary market inflow was recorded during the month. On a cumulative basis, the CSE recorded a net outflow of $ 173 million (both primary and secondary markets) during the eight months ending August.

Long-term loans to the Government recorded a net inflow of $ 50 million in August, according to the Central Bank.