Remittance falls by 7.8pc in October

The inward remittance inflow to Bangladesh decreased by 7.4 percent in October to USD $1.52 billion compared to the same month of last year.

But the remittance inflow increased by 2.03 percent in the first 4 months of the current fiscal year compared to the last FY 21.

According to Bangladesh Bank (BB) data, Bangladesh received inward remittance of $7.19 billion in July-October of FY 23 while the figure was $7.05 billion in the same time of FY 22. It shows remittance grew up by 2.03 percent in this time, despite the drastic fall in remittance inflow in September and October this year.

The BB spokesperson Md Abul Kalam Azad told in order to increase inflow, the central bank has increased the exchange rate of US dollars for remittance.

In addition to 2.5 per cent hassle-free incentive for remittance, several banks also provide additional incentives to attract foreign exchange, he said.

Apart from this, the banks will not charge any fee for remittance collection from now on. At the same time, in the current reality of foreign exchange reserves, banks have to open LCs with dollar resources from their own sources, the BB said to the commercial banks

However, according to the new decision, from now on, if the income of expatriate workers, including doctors, engineers, lawyers, and nurses is sent through the bank, the maximum rate will be Tk 107.

Besides, it has been asked to increase its own exchange house outside the country to encourage remittance collection directly through banks by reducing the dependence on foreign exchange houses. In this case, the central bank will provide the necessary assistance.

In the meeting, it was asked not to charge any kind of charge to induce remittances through official channels at this time of dollar crisis. Banks have promised to implement these decisions.

Bangladesh received inward remittance of $2.09 billion in July, $2.03 billion in August, $1.53 billion in September, and $1.52 billion in October in FY 23.

The remittance inflow was $1.87 billion in July, $1.81 billion in August, $1.72 billion in September, and $1.64 billion in October in FY22.

Economist and former IMF official Dr Ahsan H Mansur told UNB the remittance decreased as the remitter was getting lower exchange rate.

He suggested a competitive exchange rate for hunting more remittances while the country is facing a foreign exchange crisis due to export import imbalance.