Inward remittance increases by about 11pc
The country has received USD 23.91 billion as remittance in the outgoing fiscal year of 2023-24, according to the statistics of Bangladesh Bank.
The inward remittance was USD 21.60 billion during the last fiscal of 2022-23.
Inward remittance has increased by 10.69 per cent in the outgoing fiscal compared to the previous year.
A total of USD 2.54 billion in remittance was received in June, during the month of Eid-ul-Azha, which is the highest in three years.
In 2020, the country received USD 2.59 billion.
About the sudden increase in remittance , some in the banking sector said the money, which was laundered in the past, is being brought home as remittance. Moreover, banks are paying high rates against dollars. As a result, Bangladeshis are being encouraged to send remittance through formal channels and remittance is increasing.
Forex reserves have increased to USD 20.15 billion in June. Sources said the reserves have increased as the central bank has bought dollars from the local banks. Besides, foreign loans and assistance also play roles in increasing reserves.
The central bank has taken various measures to overcome the dollar crisis and to increase forex reserves.
Bank sources said Bangladesh Bank has lessened monitoring in fixing the dollar rate. Besides, rules and regulations are being relaxed to bring any type of money home through formal channels. This has an impact on the remittance income.
According to Bangladesh Bank, the country received USD 2.25 billion in remittance in May.
Bank officials said the inward remittance through formal channels started increasing after Bangladesh Bank raised the price by Tk 7 to Tk 117.
However, the banks are buying dollars at the rate of Tk 118-19 from the expatriates. These banks are selling dollars at high prices to other banks. The importers have to buy dollars at higher prices. Bangladesh Bank also buys dollars from other banks to increase forex reserves.
Inward remittance through the formal channel went up during the coronavirus pandemic as international communication was halted at the time
Forex reserves have increased to USD 20.15 billion in June. Sources said the reserves have increased as the central bank has bought dollars from the local banks. Besides, foreign loans and assistance also play roles in increasing reserves.
Bangladesh has received loans and budget assistance from various development partners at the end of June. Officials said loans, which don't need to be paid within a year, can be added to the reserve.
Inward remittance through the formal channel went up during the coronavirus pandemic as international communication was halted at that time.
The country receives USD 20 billion every month. At one stage, the forex reserve exceeded USD 48 billion. However, following the Russia-Ukraine war in February 2022, import costs went up, resulting in a dollar crisis. Bankers said that the crisis has not yet decreased.