Drastic fall in remittance, six-day total less than typical daily figure

Bangladesh has registered a steep fall in remittance inflow amid restrictions on public movement, internet connections and banking activities across the country during the last week. 

The amount of expatriate income received in six days from 19 to 24 July stands at $78 million, while the average daily inflow in the preceding 18 days was recorded at $79 million, according to Bangladesh Bank updates.  

Due to curfew and internet blackout following clashes stemming from the quota reform movement, the banks remained shut during the six-day period, except for a brief four-hour window on 24 July. 

Remittances sent during the six days were supposed to be deposited in the local banks soon after their reopening. However, the banks did not receive the expected amount of remittance on 24 July. 

Some officials of the central bank said the banks are bound to disburse the remittance within 24 hours of receipt. There might be a delay in the process if the overseas remittance houses hold onto the funds. 

According to the central bank, the country received $1.42 billion in expatriate income during the first 18 days of the current month, which is significantly higher than the $1.29 billion received in the previous year’s corresponding timeframe. The average daily inflow was $79 million until 18 July, but the subsequent six days saw only $78 million of inward remittance in total. 

The expatriate income was $1.58 billion during 1 to 24 July last year, while the amount received during the same period this year is $1.5 billion. 

Syed Mahbubur Rahman, managing director of Mutual Trust Bank, said financial transactions with the outside world were snapped for five days due to the internet shutdown, and it blocked the way of remittance inflow. 

“Those who sent expatriate income during the period should see their funds deposited by Wednesday or Thursday. If not, we hope the remittances will be deposited by next Sunday or Monday. Should the funds not arrive within the next two days, it means a significant blow to expatriate income, and it would create more pressure on the economy," he said.