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Submitted by Zahid on
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