In February, Bangladesh saw its highest remittance inflow in the past eight months, totaling $2.16 billion.
This development offers a much-needed respite for the country’s dwindling foreign exchange reserves, according to industry insiders.
February’s remittances marked a significant increase of 38.46% compared to the same month last year, as per data from Bangladesh Bank.
According to bankers, due to a shortage of dollars, some banks buy dollars at higher rates than the officially declared rate.
In January, remittances to Bangladesh surged 7.69% year-on-year to $2.10 billion, marking the highest monthly inflow in the past seven months.
According to data from the central bank, $1.98 billion arrived in December.
Additionally, $2.19 billion arrived in June last year, which is the highest for a single month.
In January this year, despite an increase in remittances, reserves fell to below $20 billion, standing at $19.94 billion.
In 2023, the amount of money sent home by Bangladeshis working abroad dropped by about $151 million in April compared to March due to a lower rate of the US dollar offered by banks, although remittance inflow usually increases in Ramadan ahead of Eid.
At present, the announced price for buying remittances is Tk109.50.
Meanwhile, despite the increase in expatriate income, the foreign exchange reserves in the central bank have further decreased. This is because the dollar crisis, which has been ongoing for two years, has not yet ended.
The central bank sells dollars from reserves to banks to meet import liabilities. Despite the dollar crisis, the central bank has sold nearly $8 billion to banks in the seven months of the current fiscal year.
