Remittance inflow down 16% in April YoY

Despite the Eid-ul-Fitr festival and improving manpower export, Bangladesh’s remittance inflow declined 16.28 per cent to $1.68 billion in April, compared to the same month in 2022, according to the latest information from Bangladesh Bank (BB).

In April last year, the remittance income was $2.01 billion.

BB spokesperson Mezbaul Haque on Tuesday told The Business Post since Ramadan began in March, the country’s remittance inflow mainly arrived during that month as Eid was just ahead. The last week of April was mainly the Eid holiday and that is why the inflow decreased.

He said they will analyse the countries from which the remittance inflow dropped and why. Afterwards, BB will recommend further measures.

Although the remittance income decreased in April, it increased slightly — by 2.34 per cent to $17.71 billion — in the first 10 months (July-April) of FY2022-23, compared to the same period of FY2021-22.

In July, August and March of FY23, the average remittance income exceeded $2 billion. But for the rest of the months of FY23, the average income was $1.5 billion.

Even though the export of manpower boomed after the Covid-19 pandemic, the remittance inflow is not increasing compared to that rate.

According to the Bureau of Manpower, Employment and Training, 11.35 lakh migrant workers were sent abroad in 2022, which was a record in the country’s history. And in the first two months of 2023, the number was 3.23 lakh.

The government is continuing to provide incentives to increase remittance income. Besides, various activities including raising awareness have been undertaken to increase remittance inflow through banking and other legal channels such as mobile banking and financial services.

Meanwhile, due to the ongoing crisis, banks are buying dollars from remitters at a higher price than the fixed rate. Bangladesh Foreign Exchange Dealers Association has fixed the rate at Tk 108, but various sources said that banks are also offering Tk 110.