Bangladesh’s remittance inflow fell by 10 per cent this May compared year-on-year, despite the rising rate of USD for remitters.
In May, Bangladeshi expatriates sent $1.69 billion as remittance, down from $1.88 billion recorded at the same month last year, show latest data from the Bangladesh Bank. However, May's figure is slightly higher than the previous month, which was at $1.68 billion in April.
Industry insiders have expressed serious concerns over the issue that remittance fell in May despite the rising USD rate in formal channels, adding that currently the USD rates for remittance collection are nearly the same in legal channels and illegal channels.
Remitters are getting at Tk 108.50 per dollar with 2.50 per cent incentives, which is quite similar to the informal market. Bankers say remittance earnings will increase in the coming days when market-based exchange rate is introduced.
Finance Minister AHM Mustafa Kamal in his budget speech on Thursday mentioned that the process of introducing market-based interest and exchange rates is underway.
During July to May of this FY, remittance earnings stood at $19.41 billion, up from $19.19 billion at the same period of last year.
