Remittance inflow hits record high in June

Expatriate Bangladeshis sent over $2.19 billion in remittances during June in FY2022-23, which is the highest in the last 35 months.

Earlier, the highest expatriate income in a month was $2.59 billion in July of FY2020-21.

According to the latest Bangladesh Bank (BB) data released on Sunday, Bangladesh has received more than $21.61 billion in remittances in FY23, which is 2.75 per cent higher than over $21.03 billion received in the previous fiscal year.

Of the total remittance received in FY23, state-owned banks brought in more than $33.99 billion.

The central bank data further showed that 43 private commercial banks brought in the most remittances.

In FY23, over $17.61 billion in remittances came through private banks. Nine foreign banks also brought in $77.18 million.

Until June 26, the growing remittance inflow and some funds added as budget support had taken the foreign exchange reserves to $31.15 billion.

A senior BB official earlier told The Business Post that remittance inflow has been rising since the beginning of June mainly due to Eid-ul-Azha, which the country celebrated last Thursday. Every year, migrants send more money to their relatives ahead of all the major festivals.

However, a commercial bank official said that the inflow has increased because of the better US dollar rate for remittance collection. Remitters now get Tk 108.5 per US dollar in remittance along with a 2.5 per cent government incentive.

The US dollar exchange rate is now the same in banks and the kerb market, which encouraged remitters to send money through banking channels, said the banker.

June’s remittance figure is higher than the amount received in May, when Bangladesh received $1.69 billion — which was 10.27 per cent lower than the amount received in May 2022, said BB data. The country received $1.68 billion in remittances in April.

However, experts said that the remittance inflow is not increasing in proportion to the rising amount of manpower exported after the Covid-19 pandemic eased and restrictions were lifted.

Money laundering and high immigration costs are the key reasons behind this, they said.