Remittance surges 39pc in Aug

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Staff Reporter :

Bangladesh received a whopping $2.22 billion as remittance in the just concluded August month, a 39 percent increase year-on-year, according to Bangladesh Bank data.

In August 2023, expatriates sent $1.6 billion as remittances, according to central bank data published yesterday.

Compared to July this year, remittance inflow in August surged 16 percent. In July, the country’s banks received $1.91 billion in remittances.

Bangladesh Bank has taken different steps to increase remittance to overcome the foreign exchange crisis and increase reserves as the remittance inflow is one of the vital sources of the country’s external earnings to boost foreign reserves.

The government provides incentives up to 2.5 percent on each remittance transfer, expansion of digital payment systems, special wage earners’ bond, and extension of investment sectors for remittance earners.

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Last month, the central bank increased the dollar rate to Tk 120 each, responding to rising demand and low supply of the greenback in the market.

Earlier on May 8, the central bank devalued the taka from Tk 110 to Tk 118 a dollar as part of its adoption of the crawling peg exchange rate system.

In the last few months, these measures have had a positive impact on expatriate income or remittances coming into the country.

Out of the total remittance flow in August, state-owned commercial banks received $461.58 million, while $78.12 million had come through the specialised banks.

Besides, local private banks and foreign private banks have received $1.755 billion and $4.71 million, respectively.

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