Bangladesh Sept remittances rise 35.88 pct on yr

DHAKA, Oct 12 (Reuters) - Bangladesh received $802.58 million in remittances from expatriate workers in September, up 35.88 percent from a year earlier, the central bank said on Sunday, despite a slowing global economy.

In July-September, the first quarter of the 2008/09 financial year, remittances from more than 5 million Bangladeshis working abroad totalled $2.345 billion, almost 44 percent higher than the same period of 2007/08.

The central bank expects the inflow of remittances to touch an annual $10 billion over the next year.

Remittances hit a record $7.91 billion in the 2007/08 financial year that ended in June, nearly a third higher than the previous fiscal year.

But economists fear the global financial crisis could cut down remittances, a key source of foreign exchange for the impoverished south Asian country.

"The inflow of remittances would be affected if instability in financial markets persists for long," Mustafa K. Mujeri, chief economist at the central bank, told Reuters.

The bulk of remittances in July-September came from Saudi Arabia, United Arab Emirates, the United States, the United Kingdom, Kuwait, Italy, Singapore and Malaysia, the central bank said.

Strong remittances also helped offset the impact of the trade shortfall and kept the overall balance of payments in surplus.

Remittances from Bangladeshis are the country's second-biggest source of foreign income after ready-made garments, which earned nearly $11 billion in the 2007/08 fiscal year. ($1 = 68.50 taka)