US dollar
Deutsche Welle

The amount of remittance sent to the country in August was US $1.6 billion which is less than 21.56 per cent from the same period last year.

The income was $2.04 billion in August, 2022. This was known from an updated statement of the Bangladesh Bank.

According to the BB, in July the expatriates sent $1.97 billion which came down to $1.6 billion in August, a slump of 19 per cent or $370 million month on month.

This trend of dropping in remittance is being recorded at a time when the country is going through a dollar crunch.

Remittance is one of two main sources of dollars in Bangladesh, with another being export income.

Though the government is taking various steps to enhance remittance to get over the dollar crisis, not much success has been shown until now.

People concerned said remittance is dropping as the price of dollars to be sent through legal channels has been fixed. Hundi traders are giving more money for each dollar than the banks, they added.

Bangladesh Foreign Exchange Dealers’ Association (BAFEDA), an association of banks involved with foreign currency exchange,  and Association of Bankers’ Bangladesh have been fixing the dollar price in export and other sectors since September, last year.

Last week the price was fixed at Tk 109.50 from the previous price of Tk 109 per dollar that is being implemented from today, Sunday. But the dollar is being sold at Tk 117-118 in the kerb market, creating a huge gap between the banking channels and the open market.

People connected to the sector apprehended if the trend continues, the remittance coming through banking channels would fall more. Meanwhile, expatriates opt for hundi channels more, they remarked.