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Bangladesh’s remittance inflow — a key source of US dollars — reached $2.04 billion in April this year, hitting the $2 billion mark for the second month in a row.
According to the latest data published by Bangladesh Bank (BB) on Thursday, the remittance inflow rose year-on-year by 21.42 per cent in April.
The country received $2.17 billion in February and $1.99 billion in March.
Officials concerned said that the country expected to receive more remittances in March as Eid-ul-Fitr was celebrated in the second week of April. Unfortunately, the inflow did not manage to cross the $2 billion mark.
On condition of anonymity, the head of treasury at a bank also told The Business Post that the whole banking sector hoped to see a good inflow of remittance before the Eid holidays but the country received $1.99 billion, which was unexpected.
He said that currently, they are offering the remitters Tk 116.50 to Tk 117.50 per US dollar. Before Eid, the rate was Tk 114-115.
Regarding this, Policy Research Institute of Bangladesh Executive Director Ahsan H Mansur said, “The remittance rate was low before Eid. That’s why remittance inflow decreased at that time. We heard that banks offered more to remitters later, and as a result, the inflow increased.”
He said that the country can receive more than $2 billion every month. But remitters send their remittance through hundi, especially from Saudi Arabia where the number of migrant workers has increased in recent times.
Dr Zahid Hussain, former lead economist of the World Bank Dhaka Office, told The Business Post, “We saw the remittance inflow crossing $2 billion several times during the Covid-19 pandemic. It means the country can gain over $2 billion in remittances every month.”
The central bank has taken many initiatives to boost remittance inflow, but its data show that these moves have largely been ineffective except in January, February and April of FY2023-24.
An analysis of BB data shows that during the July-April period of FY24, remittance inflow stood at $19.11 billion, which is 7.84 per cent higher than the $17.72 billion received in the same period of FY2022-23.
According to BB data, the remittance inflow was $362.09 million from April 27 to 30. Market insiders think that the remittance inflow was higher in these three days because from April 20 to 26, the country received $399.46 million in remittances.
Experts think that the foreign exchange market has somewhat stabilised at present and that is why remittance inflow has gradually increased.
The ABB and BAFEDA have been setting the exchange rates since September 2022 in line with the central bank’s decision.
However, requesting anonymity, a senior BB official said, “The banks are not following this rate. Most of the banks are offering their own rate to remitters.”
