A blog to promote dialog on development in South Asia
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This blog is maintained by the South Asia Region of the World Bank Group. Its goal is to exchange ideas on how to end poverty in Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka.
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Reply to SAAQ's comments
Hi SAAQ,
This is an aggregate level relationship between annual change in remittance inflows and oil price -- a dollar increase in oil price increases annual remittance inflows by $15 million, other things equal. Nearly two-third of Bangladesh's remittance come from GCC member countries. Their economic prosperity depends very much on oil prices.
In measuring the impact of oil price increase on current account, we also need to take into account the impact on import payments. Bangladesh is a net importer of oil. A dollar increase in oil prices increases oil import bills by about $26 million while increasing remittance inflows by $15 million. Hence the $11 million net loss.
Regards,
Zahid