Bangladesh receives $1.59 billion in remittance in November

RemittanceProthom Alo illustration

Bangladesh received $1.59 billion inward remittance in November, showing a slight increase in expatriate income flow, according to a Bangladesh Bank source.

Though the central bank is expecting a sharp rise in inward remittance flow after announcing half a dozen facilities including cash incentives and free-of-cost remittance-sending opportunities, the response is not yet satisfactory.

Expatriate income or remittance has been steadily declining amid the foreign exchange crisis.

The expatriates sent $1.52 billion in October. In July and August, Bangladesh received $2.09 billion and $2.03 billion respectively.

Since September the flow of inward remittance has been declining. A rumour spread among the expatriates that sending money to Bangladesh through banking channel is not secure, which has apparently impacted the remittance flow.

According to Bangladesh Bank (BB) data, the country received inward remittance of $8.78 billion in July-November of FY 23 while the figure was $8.60 billion in the same time of FY 22.

BB spokesperson Mohammad Abul Kalam Azad told UNB that in order to increase remittance 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.

Banks will not charge any fee for sending remittances through the legal channel, he said.

A research conducted by Bangladesh Bank found that more than 40 per cent of remittance is sent through illegal hundi.