Bangladesh is showing an upward trend again in remittance sent by expatriates which exceeded $2 billion in 28 days of August.
According to Bangladesh Bank’s updated report on remittance as of August 28, expatriate Bangladeshis sent $2.07 billion to the country through the formal channel.
In the same period of August 2023, remittance inflow was $1.43 billion.
Bangladesh witnessed the lowest remittance in the last 10 months in July 2024 amid the student movement.
In July, the country’s remittance was about $1.91 billion.
Banks were closed from July 19 to 23 due to the situation caused by the students’ movement against discrimination, public and general holidays.
Apart from this, broadband internet was off for 5 consecutive days and mobile internet was off for 10 days. As a result, foreign transactions with the country’s banks were almost stopped.
Bangladesh Bank has taken different steps to increase remittance to overcome the foreign exchange crisis and increase reserves.
In the last few months, these measures have had a positive impact on expatriate income or remittance coming into the country.
The remittance inflow sustained its upward trajectory into August 2022 as Bangladeshi expatriates sent out $2.03 billion in the second month of the fiscal year with a 12.58 percent year-on-year rise.
In July 2022, the country received $2.09 billion from expatriates, which was the highest in 14 months, while the daily average remittances received was $67.6 million.
In the 2021-22 fiscal year, remittances from expatriates slipped by 15.12 percent year on year. In the previous fiscal year 2020-21, remittances grew by 36.1 percent to $24.78 billion.
The dollar price has been on the rise for several months recently due to a supply crisis. Besides the banks, the dollar price also rose in the open market. Banks are buying the foreign currency at a higher rate from foreign exchange houses to serve customers.
On Jun 30 2022, Bangladesh Bank relaxed the managed floating rate control on the value of the dollar.
Currently the dollar-taka exchange rate in banks is around Tk 106 and in the open market, it is Tk 112 on Thursday.
To ensure supply, Bangladesh Bank on Wednesday ordered individuals to sell off or deposit dollars in excess of $10,000 by Sept 30,2022 or face legal actions.
