Remittance inflow surpasses USD 2b in 25 days

Over the first 25 days of October, expatriate Bangladeshis have sent home USD 2.03 billion (203 crore 29 lakh) in remittances.

Despite this substantial inflow, total remittances for the month may still fall short of September’s figure, when expatriates remitted USD 2.68 billion (268 crore 50 lakh), according to the latest report from the Bangladesh Bank.

Data from the central bank show that during the first 25 days of October, state-owned banks channelled USD 384.6 million (38 crore 46 lakh), while two specialised banks received USD 197 million (19 crore 70 lakh).

In contrast, private commercial banks facilitated USD 1.45 billion (144 crore 63 lakh) and foreign banks accounted for USD 4.87 million (48 lakh 70 thousand) of total remittance inflows.

Banking officials noted that since the fall of the Awami League government in August last year, the flow of remittances through formal banking channels has increased.

The high exchange rate of the US dollar has also encouraged expatriates to send money through legal means. These factors have contributed to a steady rise in remittance inflows in recent months, a trend that has continued this month as well.

Remittance inflows have maintained a positive trajectory over the past year. In March, remittances reached a record high of USD 3.29 billion (329 crore), marking the highest monthly inflow in Bangladesh’s history.

Since then, monthly remittances have not crossed the USD 3 billion (300 crore) mark. The rise in remittance earnings is attributed to a decline in money laundering and reduced illegal hundi transactions.

Additionally, stability in the banking channel’s exchange rate has further encouraged formal transfers.

Meanwhile, according to the latest data from the Bangladesh Bank, as of 22 October, the country’s gross foreign exchange reserves stood at USD 32.10 billion. However, under the IMF’s BPM6 methodology, the reserve amount is USD 27.35 billion.